Types of loans
What type of loan is typically used to purchase a home?
Conventional Loans.
What are the names of the three major credit bureaus that calculate credit scores?
Equifax, Experian, and TransUnion.
This term refers to the time a borrower has to repay a loan.
what this A Long Term
Type of interest rate changes periodically based on the benchmark rate.
Variable interest rate
This action involves taking out a loan and making regular payments to establish credit.
Apply for a credit-Builder loan
A loan that is used to finance the purchase of a car is known as what?
Auto Loans
What is the most commonly used credit score model?
FICO Scores
The type of interest is calculated on both the principal and accumulated interest of the loan.
Compound Interest
This is the term for an interest rate that remains the same throughout the life of the loan.
Fixed Interest Rates
A common type of revolving credit is where you can borrow up to a set limit, make payments, and borrow again.
Credit Cards
Type of loan allows you to borrow money for educational purposes?
Direct Subsidized Loans and Direct Unsubsidized Loans.
What is considered a "good" credit score on the FICO scale (between 300-850)?
670 to 739
The fee is typically charged when a borrower makes a payment for the same loan amount but with a shorter repayment period.
Prepayment Plenty
The concept refers to the percentage increase in interest paid over time if a loan is paid off early.
What is this annual percentage rate?
Missing payments or defaulting on a loan will affect the available credit that you are currently using.
damaging your credit rating
Loan where you borrow against the equity in your home is called a_______loan.
Home equity loan
What is the lowest credit score range that is generally considered "poor"?
300 to 579
It is the percentage of the loan amount the borrower agrees to pay the lender for borrowing money.
Interest rate
The type of loan interest is calculated on the original amount borrowed, regardless of the principal paid down.
simple interest
This percentage of your available credit that you are currently using.
credit utilization ratio.
Which type of loan is short-term and typically used for emergencies or unexpected expenses?
Emergency Loans.
A "hard inquiry" on your credit report can lower your score. Which action typically triggers this type of inquiry?
apply for a loan, credit card, or line of credit.
This term refers to higher monthly payments for the same loan amount shorter repayment period.
What is this a loan with shorter term
A high interest rate on a loan typically occurs when the borrower has a low________.
low risk
This action can help you improve your credit score by showing responsible management of credit.
pay on time