What is credit?
borrowed money
On a loan, if you had EXCELLENT credit, would one be charged a higher or lower interest rate?
lower
What is the range of good (NOT EXCELLENT) credit score?
690-719
The _________ component that helps make up a credit score impacts one's credit score by 35%.
Payment history
Would an auto loan have a fixed or variable interest rate?
Fixed.
What is the difference between secured and unsecured debt?
Secured = has a physical item linked to it, meaning the bank has something to take from you.
Unsecured = nothing is attached to the debt, meaning if you do not pay then the bank cannot take anything. has higher interest rate
Tom spends $50 on credit, with an interest rate of 9.6%. How much will interest be after 3 months?
$14.4
What is the range for a BAD credit score?
300-629
The _________ component that helps make up a credit score impacts one's credit score by 30%.
Outstanding balances
Would a student loan have a fixed or variable interest rate?
Fixed
Julie spends $112 on credit, with an interest rate of 7.8%, how much will she be paying in interest if she pays in full at the end of the month?
NONE
what is the range of all credit scores?
300-850
The _________ component that helps make up a credit score impacts one's credit score by 15%.
Length of history
Would a credit card have a fixed or variable interest rate?
variable
What is a common way that one could avoid interest?
Paying off the credit balance in full.
6.5%
what is the range for an excellent credit score?
720-850
The _________ component that helps make up a credit score impacts one's credit score by 10%.
(ex. Installment and revolving credit)
Types of credit
Would a small business loan have a fixed or variable interest rate?
What is revolving credit?
Open line of credit, payments depend on the size of the debt.
If one had excellent credit and was applying for an auto loan, what would their interest rate be (or close to).
hint: think about the "Dream Car" assignment.
around 6.85%
what is the range for a fair credit score?
630-689
The _________ component that helps make up a credit score impacts one's credit score by 10%.
Applications for new account
Would a pay day loan have a fixed or variable interest rate?
variable