Scooby
The state of owing money to another individual or business, or the amount of money borrowed...
Debt
A summary of a consumer's credit history.
Credit Report
A number that summarizes your credit worthiness:
Credit Score
If my APR is 18%, what would my monthly rate be?
1.5%
A person who will assume responsibility for the debt IF YOU FAIL to repay a loan is a?
Cosigner
Which of the following will NOT build your credit?
Credit Card
Secured Credit Card
Auto Loan
Debit Card
Mortgage
Debit Card
The cost of using credit, often expressed as a interest or fee:
Finance Charge
What is the debt-to-income formula?
Debt / Income = DTI
A credit card is an example of which type of credit?
Revolving credit
APR stands for what?
Annual Percentage Rate
Which method of debt payoff has you list your debts smallest to largest and then pay off those debts starting with the smallest owed amount first?
Snowball method
What financial product am I? I am a type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account. Due to this deposit requirement, I am often a good choice for young people looking to establish a credit history.
Secured Credit Card
The shorter your term length, the (higher or lower) your monthly payments, and the (higher or lower) the total interest you will pay.
higher
lower
If I go do a house or car loan, they do this type of _______________________ check, which if done frequently, can negatively impact my credit score:
Hard Credit
What is the credit score range?
300 - 850
What's the only way to avoid interest charges on your credit card?
Make full payments on time every month.
How can your credit score impact your financial situation?
Determines if you'll be approved for loans and other items later on. Also determines the interest rate at which you'll be charged.
Reading through a credit card disclosure (aka the Schumer Box), you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?
(A) When given a range of APRs like this, you can assume most cardholders pay the lowest rate listed
(B) Your APR will be within that range, depending on the strength of your credit history
(C) With credit card APRs, cardholders like higher APRs because they earn more
(D) The APR on credit cards is usually fixed so it won't be adjusted as long as you are a cardholder
(B) Your APR will be within that range, depending on the strength of your credit history
Which method of debt payoff has you list your debts from largest interest rate to smallest and then pay off those debts starting with the highest interest amount first?
Avalanche method
What is Mr. Mason's favorite superhero?
Spider-Man!
If I have a credit card with a balance of $743.28, I make a $40.00 payment to it, and then my APR is charged at 14.9%, what is my current finance charge:
$104.79
Your teacher tells you about the importance of checking your credit report. Which government-run website allows you to download your credit report for free on an annual basis?
Name the three major credit agencies!
Equifax
Experian
Transunion
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
30 months
What are the two most important factors in calculating your credit score?
Payments history
Total outstanding debt (or total amount owed)