Credit Cards
How do you avoid paying interest on credit cards?
What is the range of Credit Scores (low to high)?
300-850
This is the length of the loan.
Term
This is when a small device is put on ATMs and credit card machines to copy your debit or credit card numbers.
Skimming
This is a loan that is not backed by a pledged asset.
Unsecured loan
T or F.
The use of debit cards can affect your credit score.
False
How can your credit score impact you financially?
Affects your ability to get approved for credit or loans and can affect what interest rate you get
Which loan will cost the most:
$2,000 @ 5% for 24 months - or -
$2,000 @ 5% for 36 months and why?
$2,000 @ 5% for 36 months because the longer the term the more interest you pay
T or F.
Your identity can be stolen if you pay cash.
False
This is a number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score
T or F.
Credit cards (generally) have higher interest rates than installment loans.
True
How long will information stay on a credit report?
7-10 years
This is an asset that can be used to pay for the loan if a person can't make their payments.
Collateral
T or F.
This is a safe password:
A#87Houze
True
A type of credit card that is backed by a savings account used as collateral on the credit available with the card.
Secured credit card
Give one way to get a credit card if you are under the age of 21.
Secured Card, Co-Signer, Prepaid Card, Using parents account with your own card
What are the two most important factors in determining your credit score?
Payment history and amounts owed
This is the original amount borrowed.
Principal
George just got a call from a man from the "IRS" saying that he owes more taxes and that he needs to tell him his credit card number. What has George become a victim of?
Phishing
This is a detailed report of your credit history complied by the credit bureau and is used to determine your credit worthiness.
Credit report
This table on a credit card statement gives pertinent information about your account.
Schumer Box
What website is recommended by the government to get your annual credit report safely?
This is a table of all payments of a loan that shows the principal and interest paid for each month.
Amortization Schedule
According to the CBS Sunday Morning Video, about how many people are affected by ID Theft?
10 million
The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender.
Minimum payment