Credit Rating
Credit Cards
Saving/Investing
100
What is the definition of creditworthy?
The measure of your dependability to repay a loan
100
What are two reasons to use a credit card?
Easy to use Can use money you don't have Safer than cash/check
100
What is a budget?
A person's plan for receiving and using income
200
What is the definition of 'credit history'?
A person's record of paying bills and debts over time
200
What are two reasons NOT to use a credit card?
Can get you into debt Can lower your credit score if not paid off Interest rates/fees
200
What is compound interest?
Computed on the amount saved plus the interest previously earned
300
What are 2 ways you can improve your credit score?
Establish a steady work record pay all bills promptly open a checking account and don't bounce checks open a savings account and make regular deposits apply for a local store credit card and make regular payments apply for a small loan using your savings account as collateral get a co-signer on a loan and pay back the loan as agreed
300
What factors can lead to a family's inability to make required payments?
Family Separation Illness Job loss
400
What are two of the "three Cs" of credit?
Character, Capital and Capacity
400
Can the interest rates on credit cards change? If so, what causes a change?
Yes, universal default (missing 1 payment on anything)
400
What is one kind of retirement plan?
401, IRA, Self employment retirement
500
What are three ways you can improve your credit score?
Establish a steady work record pay all bills promptly open a checking account and don't bounce checks open a savings account and make regular deposits apply for a local store credit card and make regular payments apply for a small loan using your savings account as collateral get a co-signer on a loan and pay back the loan as agreed
500
How much does the average consumer know about their credit cards? Why?
Not much. The fine print, complicated contracts, changing laws etc.
500
What is the difference between a stock and a mutual fund?
Owning a portion of one company vs. owning a portion of multiple companies
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