Credit Basics
This type of credit allows continuous borrowing and repaying up to a certain limit
What is Revolving Credit
True or False: As long as you make minimum payments on your credit card, your credit score cannot increase
What is False?
Bonus: Explain why
This is the term for the full amount borrowed on a loan
What is the principle?
Net worth is calculated by subtracting one's total ____________ from one's total ____________
What are total liabilities from total assets?
True or False: paying back your student loan is a good way to build your credit score
What is True?
Student loans, mortgages, and car loans are all examples of this type of credit
What is installment credit?
Cash advances, transfers between credit cards, and late payments can all result in this
What are Additional credit card fees?
True or False: Buy Now, Pay Later plans are great because they allow unlimited time to pay for something.
What is False?
True or False: Having a negative net worth is not necessarily a reason for concern
What is True?
One way for a young person to begin building credit is to piggy-back off of their parents' credit by becoming a(n) ___________________ their credit card.
What is an authorized user?
A summary of your credit history is also known as this
What is a credit report?
Interest that is charged on the full amount of a loan as well as the accumulated interest to date is also called this
Compound Interest
A payment plan that involves installment payments financed on credit is called this
What is Buy Now, Pay Later?
If a family has a $400,000 home, 35,000 in the bank, and a $25,000 car, their total assets amount to this.(based on these only)
What is 460,000?
True or False: It typically takes about 10 years to pay off a student loan
False. It typically takes longer, and can span several decades
In Canada, this is the highest credit score you can achieve
What is 900?
The percentage of available credit that the borrower actually uses is called this
What is utilization rate?
A loan that is an investment in something that will (hopefully) bring financial returns in the future is an example of _________ debt.
What is good debt?
What is a liability?
This type of card is popular among younger people because they do not require existing credit, and they can only use money you already have
What is a debit card?
What type of credit check does not affect your credit score?
What is a soft credit check?
The estimated interest charged over a year is called APR, which stands for this.
What is Annual Percentage Rate?
This is the term for a valuable asset used to secure a credit card or loan
What is collateral?
This is the main reason why tracking net worth is a good idea
What is: to gauge your financial health and/or set goals for the future?
If you plan on paying less than the full amount each month, this is what you should consider most closely when choosing a credit card.
What is APR (interest rate)?