1
Give an example of an installment loan
mortgage or car loans
What is secured loan
Backing a loan with a item of value
What does the Fico Credit Score predict
How well you can pay back debt
Something valuable that a lender hold as security until the repayment of a loan
What is collateral
What happens if you only pay the minimum payment on your credit card
You will end up paying 2 to 3 times the price of the item
Give an example of revolving credit
Credit cards
Companies that collect information about your credit history
Experian, Equifax, Transunion
A method for computing equal monthly payments for an installment loan showing the principal and interest is an Amortization schedule. True or False
True
The repayment of the loan over a set period of time
What is the term
Total of all fees when borrowing money, including interest, penalty, and other fees.
Finance Charges
What is the APR
The annual rate of interest that is charged for using credit that includes all the fees you will be paying.
It also helps you compare credit cards and loans for the best terms.
an interest rate that does not change from month to month
fixed interest rate
What are the ranges in Credit Scores
300-850
A summary of a person's borrowing and repayment history
What is credit history
A set of time where a payment can be made without a penalty.
What is a Grace Period
Bankruptcy appears on your credit report for how many years
7-10 years
A contract to rent a car or property during a specified time for a specified payment
Lease
A decrease or loss in value
Depreciation
An arrangement to receive cash, goods, or services now and pay for them in the future.
What is credit
You want to buy a house, what type of loan would you look for
What is a Mortgage
What is the Principal
The amount of money borrowed
The cost of using someone else's money
What is interest rate
Which kind of Bankruptcy is considered the 'reorganization' type
Chapter 13
The amount of money you owe on your credit card or loan.
What is balance
Initial payment is made when something is bought on credit. For example when buying a home or vehicle
What is a down payment?