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What is credit?
Using borrowed money to make purchases
What is the beginning balance of a loan?
the total amount of the loan owed by you
Why is keeping good credit important?
Without good credit, you will have difficulty getting loans, credit cards, and mortgages—or not be able to get any of those at all.
Is 600 and behind good or bad credit?
Yes
What is the character of a person for loans and credit purchasing?
Their credit history
Why should you always pay the maximum off of a credit card payment or other monthly payments?
A. your credit score will go down
B. Your interest charges or fees will continue to expand, resulting in more time paying off the loan.
"How does an annual percentage rate (APR) for mortgages differ from a more traditional interest rate" (NGPF)?
"APR includes other applicable fees, taxes, insurance, and penalties in addition to the interest rate" (NGPF).
How is a fixed rate different from an adjustable rate for mortgages?
Fixed is a stuck rate for a mortgage
Adjustables are cheap at first but can increase
Owning requires a one-time purchase
An auto loan is taking out a loan to pay off a car
Where can one get a auto loan from?
Banks or Dealerships are the two major places to go for an auto loan
Define an amortization schedule.
A chart that breaks apart your loan. Includes
Payment number
Payment date
Beginning balance
Scheduled payment
Extra payment
Total payment
Principal
Interest
Ending balance
Cumulative interest
Scheduled payments are every.....
Month
How is a Scheduled payment different from an Extra
payment
Your adding money to your monthly payments.
Which is more consequential a mortgage or a car loan? And why
A mortgage. It involves more things. "applicable fees, taxes, insurance, and penalties in addition to the interest rate" (NGPF).
How is a savings account different from a retirement account?
A retirement account is for retirement; savings can be for retirement, but its main purpose is to hold on to your money safely.
The part you have to pay for a damage.
How is a down payment different and similar to a deductible?
down payment is for loans
deductibles belong under insurance
Both are similar in that both are out of pocket (your money) for a loan or insurance claim.
"Pretend your homeowners policy has a premium of $150, a deductible of $5,000, and a limit of $300,000. Your home suffers $170,000 in damages" (NGPF).
How much will you pay for the damages?
How much will your insurance pay?
1. 5,000
2. 165,000
They want to know that you are liable to pay off the debt, and they want to make up some money.
Explain the principal of a loan.
It is the portion of the loan you pay off for your payments.