Show:
Credit 1
Credit 2
Credit 3
Credit 4
Credit 5
100

T/F:  Paying your credit card in full every month will build up interest.

False

100
How do debit cards differ from credit cards?
Credit cards allow you to purchase items and pay later - debit cards are linked to a checking or savings account and are paid when you make the purchase.
100

T/F: Debit cards help build your credit history

False.

100

What are sources of credit?

Banks, Credit Unions, Online, Credit Cards

100

What are 3 types of credit?

Credit Card, Car Loan, Mortgage
200
T/F: If you take a loan out from your 401K, you have to pay taxes on the money borrowed.

False.

200

Typically, how long are mortgages?

15-30 years

200

When should you start paying back your student loan?

After graduation but pay interest while in school

200

What kind of loan is more risky, secured or unsecured?

Unsecured 

200
Why can it be a good idea to transfer your credit card balance to another credit card?

0% Balance Transfer Fee for a set amount of time can help pay the balance down with incurring interest

300
What is a grace period and how long does it last on credit cards

The number of days you have before a credit card starts charging you interest on your new purchases. Usually 30 days.

300
What is the 3 letter acronym for the interest rate, expressed per year, applied to your purchases?
APR (annual percentage rate)
300

Which of the following will not build your credit history? credit card, mortgage, debit card

debit card


300

What happens if you pay your credit card balance by the due date?

You will not be charged interest

300

Give 2 examples of how credit cards are good.

Build Credit, Combine monthly payments into one payment, cashback benefits 

400
How does have a lower credit score affect your loan?
It makes it easier to get approved for the loan and gets you lower interest rates.
400

What is collateral? Give 2 examples.

Collateral is security you provide the lender. You pledge an asset that if you don't repay your loan, your collateral will be the security. Car, home, boat, savings accounts, investments

400

When is a good time to take out a payday loan?

Never. Payday loans are the worst financial decision. If it's absolutely needed, $500 or less. 
400

How can adjustable rate mortgages be a good thing?

They typically result in lower interest rates at some point over the mortgage term

400

What are 2 things to do if you can't make your loan payments?

Contact your lender, request a deferral, refinance, trade in/sell

500

What is the "box" called on credit card applications that is mandated to have easy-to-read information regarding the credit card?

Schumer Box

500

Why is there a range for credit card APR? (ex. 14%-23%)

APR is based on credit score. Higher credit scores get lower interest rates

500

Why can making extra payments on an amortized loan be helpful?

Extra payments are applied to the principal so your balance goes down quicker.

500

A credit card offer comes in the mail with the bold print "0% A.P.R. for New Accounts."   Which important piece of information should you find before thinking about signing up?

How long is the credit card at 0%

500

Longer term lengths result in ________ payments and ________ interest paid. (Higher/Lower)

Lower payments, higher interest paid