Interest Rate Showdown
You invest $500 at 10% annually, compounded yearly. How much after 2 years?
$605
True or False: Payday loan interest is capped in most states.
False (only in some)
Can you pay extra on student loans?
Yes — and it saves interest!
What’s a secured credit card?
A card backed by a deposit, used to build credit
You plan to move in a year. Rent or buy?
Rent
What kind of rate is most beneficial for a savings account?
High APY
Do payday loans typically report to credit bureaus?
No, unless in collections
What is loan consolidation?
Combining multiple loans into one
You miss a payment on your credit card. What happens?
You may get charged a late fee and your credit score may drop
Can rent increase each year?
Yes
What kind of rate is most beneficial for a loan?
Low APR
What’s the typical fee for every $100 borrowed in a payday loan?
$15–$30
What’s the best way to lower total loan interest paid?
Pay extra toward principal
What’s credit utilization?
Percentage of your credit limit you’re using
What’s home insurance for?
Protects against damage/loss
True or False: Interest works the same for savings and debt.
False
Should payday loans be your first option?
No
What’s forbearance?
Temporary suspension or reduction of loan payments
Should you max out your credit card each month?
No
What’s one upfront cost of buying a home?
Down payment
What’s one way to reduce loan interest over time?
Pay extra toward principal
What’s a red flag of a predatory loan?
Extremely high fees, short terms, aggressive collection
What does defaulting on a loan mean?
Failing to repay as agreed
What’s one factor in calculating your credit score?
Payment history, credit utilization, credit history length
You’re tired of dealing with landlords. What’s your long-term option?
Buying a home