CREDIT
Is checking your own credit report a hard or soft inquiry?
Soft inquiry
What is APR?
Annual percentage rate, a measure of borrowing cost
What does FAFSA stand for?
Free Application for Federal Student Aid
Name ONE car ownership cost besides your monthly loan payment.
Insurance, fuel, maintenance, registration, parking, or repairs.
What does credit utilization compare?
Credit card balance to available limit
What happens if you only make minimum payments?
Often more interest and longer payoff
Is a Pell Grant or federal student loan normally repayable?
Loan yes, grant generally no
Which usually costs less in total interest: a 48-month or 72-month loan at the same APR and principal?
48 months, although the monthly payment is higher.
True or false: You must carry a credit card balance and pay interest to build credit.
False. Paying the statement balance in full and on time can build credit.
What three additional car expenses are often overlooked?
Insurance, maintenance, fuel, registration
What should a Marine do before classes start to use TA?
Confirm eligibility and receive approval through education process
What is the difference between a car sticker price and the “out-the-door” price?
Out-the-door includes applicable taxes, title/registration, and dealer fees.
Which generally matters more for a FICO score: payment history or credit mix?
Payment history: approximately 35% versus 10% for credit mix.
What happens to total interest paid if you pay ONLY minimums instead of larger monthly payments?
Generally more interest and a longer payoff period.
True or false: Completing the FAFSA means you MUST accept student loans.
False. Loans offered through a financial aid package can be declined.
A dealer asks whether you can afford $450/month. What TWO numbers should you request before agreeing?
The out-the-door price and the APR/loan term (and calculate total paid).
Marine A has a 15% utilization rate but missed a payment; Marine B has 70% utilization and always pays on time. Name a credit risk for EACH.
A: missed-payment history. B: high utilization. A single example cannot determine which has the higher score.
On a $1,500 card balance, what is roughly one month of interest at 24% APR?
About $30, using 24% ÷ 12 = 2% per month.
A Marine wants to start class next week but has no TA authorization. Enroll now or check approval first? Why?
Check with the Education Center and obtain TA authorization before class begins; unapproved tuition may be the Marine’s responsibility.
A $25,000 car is financed for 60 months at 8% APR. Is the total repayment closer to $25k, $30k, or $40k?
About $30,415 in loan payments; roughly $5,415 of interest, excluding extra fees.