Vocabulary
Balance Owed.
The amount owed on a loan.
What are the two options of buying a car?
Buying or leasing
Will a high credit score help you buy a house?
Yes
What is the definition of Savings?
The amount of money you have in case of an emergency or a bad situation.
Def. of Credit Limit.
The highest amount you may charge on a credit card. Your limit is set by your card company's opinion of your ability to handle debt.
What is a Sticker Price.
The price shown on the tag in the car's window.
What is the percentage you should save up for a deposit?
20%
What is the definition of budgeting?
An estimate of income and expense.
Def. of Credit Score.
A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.
How can you check insurance rates?
By calling your insurance agent.
How many months worth of mortgage payments should you save up for?
6 months.
There is no interest charged on debit card purchases. T/F?
True
Extra money that you owe on a loan.
Interest
Def. of Credit History.
A record of your borrowing and paying habits. Credit reporting companies track your history and supply this information to credit card companies, credit unions, and other lenders.
Where can you go to get estimates on the vehicle?
The Kelley Blue Book.
Should you apply for new credit cards a year before buying a mortgage?
No
What two things are required for a savings account?
1. Social Security # 2. Id with picture
A promise by the manufacturer to replace defects for a set time.
Warranty
Def. of Consumer Debt.
Money people owe to banks or stores for goods they have purchased.
Exist in many states and protect consumers from the consequences of buying a defective car.
Lemon Laws.
What lenders do not want to see when you are trying to purchase a house?
living paycheck to paycheck
The budgeting process starts with monitoring current spending. T/F
True