What is the difference between a ROTH IRA and a 401K
Any contributions to a 401K are tax deductible. There are no tax deductions for a Roth IRA, but this money can be withdrawn tax free in retirement!
What is deferment?
Postponing of payments for loans
What is considered good credit?
670-739
Paying less than your minimum payment is counted as a missed payment
Fact
What is the difference between unsubsidized and subsidized loans?
Subsidized- the government pays your interest as long as you’re enrolled part time
Unsubsidized- The student is responsible for paying the interest
What is the difference between credit and debit
Credit- money loaned from a bank that you must pay back
Debit- money in your checking account
What does APR mean?
Annual Percentage Rate
What is a good amount of credit cards to have?
3 or 4
Credit card interest compounds daily
Fact
T/F: College graduates with student loans still tend to have higher household incomes than those who don’t
True!
What kind of organization is Gamma Phi Beta?
What is Depreciation?
When an asset loses value
How much of your credit card should you utilize? (From your credit limit)
30-40%
Negative information can remain on your credit report for only three years
Fiction. It remains for up to seven years!
T/F: Going to graduate school puts your student loans into deferment.
Yes, as long as you are in part time!
What is the 60/40 rule?
60% of your paycheck should go to spending (bills, fun, etc) and 40% should be put into savings
What is a credit report?
A history of payments, collections, bankruptcy claims, and general finances of a borrower
What five factor affect your credit score?
Total accounts, length of credit, inquiries, revolving utilization, missed payments
40% of college students are in credit card debt
Fact. Around 42% of college students are in credit card debt!
How long does it usually take for someone to pay off their student loans?