Products
Is your main transaction account that most people have at their primary institution
Checking account
Type of Loan that is used for Tuition, Housing, and Books.
Student Loans
Transactions and purchases that cost a different amount every month
Variable expenses
Great way to automatically transfer money from your paycheck to a separate savings account
Direct Deposit
The data lenders pull when you apply for a debt product
You can also pull your own once a year
Credit Report
Often offered by your employer this account lets you contribute to your retirement savings tax deferred
401K
Type of Mortgage Offered to Borrows who have never owned a home that has a lower down payment requirement.
FHA (first time homeowner) mortgage
with a lower downpayment borrowers will also have higher monthly payment as well as PMI (private mortgage insurance)
Type of Budget that accounts for every dollar with each month's budget.
Zero Sum Budget
An important aspect of savings accounts that help you grow your balance over time.
Interest Rate
How many different credit Bureaus are there?
Three
Equifax
Transunion
Experian
Retirement account that is offered by Banks and Credit Unions that lets you contribute after tax dollars toward retirement.
Roth IRA
What are the two types of interest rates for any given debt product?
Fixed and Variable
In a 50/30/20 budget what category does the 20 represent?
Savings
Term that describes your total savings Vs your Total Income
(it should be between 15 and 20%)
Savings Rate
What 3 time periods are late payments showed as on a credit report
30 days+
60 days+
90 days+
Helps you repair or begin your credit profile, will require a deposit to open.
Secured credit Card
When you Re-apply for new terms and rates of an existing loan
Refinance
What is the Max Amount of your gross income that should go towards housing?
40%
In an Emergency Funds how many months of expenses should you have saved
3-6 Months
How long does a hard credit inquiry (pull) appear on your credit report.
Two years
In this account you deposit a set amount of money for a set period of time at a set interest rate. if you withdraw funds before the term ends there is often a penalty
CD (Certificate of Deposit)
A Credit line that leverages the Value in your home as Collateral.
HELOC (Home Equity line of Credit)
Total Assets minus Total Liabilities
Net Worth
Name of the Formula that calculates your savings growth rate over time.
Compound interest
A = P (1 + r/n)^(nt)
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for.
The name of the ratio that calculates your usage rate of total available credit.
Utilization Rate (Balance / Total credit line)