Option 1
When you use a credit card, you’re borrowing from this type of institution.
What is a lender or bank?
This type of mortgage has an interest rate that changes over time.
What is an adjustable rate mortgage (ARM)?
Interest rate
what is percentage of money charged on top of principal?
Term
What is how long you have to pay the money back plus interest?
Principal
What is the initial amount of money you pay?
Understanding annual fee, interest rate, and grace period
What are things to consider when getting a credit card?
To purchase their first home, the Thompsons took out a(n)
What is mortgage?
Prepaid card
What is a card you put money on before you use it?
The three basic components of credit
What is principal, interest rate, and term?
A car loan is an example of _______ where the loan is backed by collateral. If payments are not made, the lender can seize the car itself.
what is secured debt?
The process of paying off a debt in regular installments over a period of time is known as
What is amortization?
Spending limit is set by how much is in your checking account
What is a debit card?
Identify the 3 types of debt
What is auto, home, credit debt?
The smallest amount you can pay each month to keep your credit card in good standing
What is the minimum payment?
A(n) _____ is often considered a risky option for emergency cash because it needs to be repaid by your next paycheck and has a high interest rate.
What is a payday loan?
credit card
What is a card that a user can borrow money with and build credit?
Jenny’s mother added her as a(n)______on her credit card account so Jenny could build a credit history under supervision.
What is Authorized user?
Paying off your balance in full each month
What are ways to avoid or minimize interest?
The maximum amount of money that can be charged to a credit card is known as the
What is credit limit?
When you fail to make payments on an auto loan, this can happen to your vehicle.
What is repossession?
some things you’d recommend someone do to save money on a mortgage
What is big down payment, set up low APR, and pay more than monthly payments?
Cover an emergency expense, build credit history for the future, rewards programs
What are some reasons why someone might use a credit card to make a purchase?
Schumer box
What is a list of purchases the bank issues once a month to credit card users?
Ways for young adults to build credit (1/4)
What is get a cosigner, pay off student loans, get a secured credit card, or be an authorized user?
Net worth calculation
What is assets minus liabilities?