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Credit is Key
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Collateral Damage
100

This type of credit cards typically charge the highest interest rates on purchases.

Retail charge cards

100

As a percent of your take-home pay, your monthly credit payments should not exceed what percent?

20%

100

This is the type of interest rate that changes periodically.

Variable rate

100

What do you do if there is an error on your credit report?

Request a correction

200

What is something you can do as a high school student to help you establish credit.

Open a checking and savings account

200

What is the charge you might receive for paying off a loan early.

Prepayment penalty

200

Give an example of something that would be requested in a typical credit card application.

Income, employment, address, existing charge accounts, etc
200

Using this type of card is equivalent to using cash.

Debit card

300

Who issues credit reports on individual borrowers?

Credit bureaus

300

What is the number one thing you need to do to build a strong credit history (this also accounts for the biggest part of your credit score)?

Make your payments on time

300

This source of consumer loan typically charges the highest rates are are regulated by the states in which they operate.

Consumer Finance Companies

300

What secures most single payment loans?

Collateral

400

This source of consumer loan typically offers the most favorable terms for borrowers.

Credit Unions

400

This type of loan is repaid in a series of fixed, scheduled payments rather than a lump sum.

Installment Loan

400

When is it less expensive to use your savings to make a large purchase than to get a loan?

When the interest rate on your savings is lower than the rate of the loan

400

What can you do to have an interest-free loan from your credit card company?

Pay off the full balance on or before the due date

500

What are the "5 C's of Credit"?

Character, capacity, collateral, capital, and condition

500

This is the type of loan you would get if you have an unhealthy credit situation cause by overusing credit.

Consolidation loan

500

These two types of student loans do not have to be repaid until after you graduate from college.

Direct and Perkins

500

This is the legal claim that allows creditors to liquidate loan collateral.

Lien