Credit and Cards
This type of card takes money directly from funds you already have in your bank account.
What is a debit card?
A loan backed by something valuable that a lender can repossess if the borrower stops making payments is called this type of loan.
What is a secured loan?
This habit is generally the most important thing a person can do to build or improve a credit score over time.
What is making payments on time?
Equifax, Experian, and TransUnion are examples of these organizations.
What are credit reporting agencies/credit bureaus?
This debt payoff method directs extra money toward the debt with the smallest balance first while maintaining minimum payments on the others.
What is the debt snowball method?
Unlike using a debit card, using this type of card means you are borrowing money that you must repay.
What is a credit card?
A car loan is an example of this combination: secured or unsecured, and commonly fixed-rate or variable-rate.
What is a secured, usually fixed-rate loan?
Applying for several credit cards within a short period can hurt a credit score because it can create several of these.
What are hard inquiries?
This document contains information about your credit accounts, payment history, balances, and other credit activity.
What is a credit report?
This debt payoff method targets the debt with the highest interest rate first and generally saves the most money in interest.
What is the debt avalanche/high-rate method?
A debit card, prepaid debit card, and credit card all work differently because they access money in different ways. True or false?
What is true?
On a standard fixed-rate amortized loan, the monthly principal-and-interest payment generally stays the same, while this portion of the payment decreases over time.
What is interest?
Of payment history, amounts owed, length of credit history, credit mix, and new credit, these two generally make up the largest portions of a traditional FICO score.
What are payment history and amounts owed/credit utilization?
You discover that your credit report incorrectly shows a payment as 60 days late. You should dispute the inaccurate information with this type of organization.
What is a credit reporting agency/credit bureau?
Someone is struggling to make a car payment. Before simply skipping payments, a smart first step is to do this with the lender.
What is contact the lender to discuss options?
To avoid being charged purchase interest on most credit cards with a grace period, you should do this by the payment due date.
What is pay the statement balance in full/on time?
When you make an extra principal payment on an amortized loan, it can reduce both the time needed to pay off the loan and this cost.
What is total interest paid?
A borrower with a 730 credit score will generally receive this compared with a borrower with a 600 score: a higher or lower interest rate.
What is a lower interest rate?
A credit report shows “30 days past due.” This means the borrower did this.
What is made a payment at least 30 days late?
Failing to repay federal student loans can potentially result in these being taken from your paycheck or federal tax refund.
What are wages or tax refunds?
A credit card advertises an APR range of 9.99%–23.99%. This factor is one of the main reasons one applicant may receive a different APR than another.
What is creditworthiness/credit history/credit score?
A loan charges the same monthly payment for five years. Early payments contain more interest and less principal, while later payments contain less interest and more principal. This process is called this.
What is amortization?
Older consumers often have higher average credit scores than younger consumers partly because they have had more time to build this.
What is credit history/payment history?
A person’s credit score can affect whether they qualify for a loan and also affect this major cost of borrowing.
What is the interest rate/APR?
A $300 payday loan eventually costs a borrower $750 because the borrower repeatedly renews the loan and is charged additional fees. This cycle is commonly referred to as this.
What is the payday-loan debt cycle/rollover cycle?