Credit
A financial agreement where a borrower receives something of value and agrees to repay it later.
What is Credit?
To borrow funds from a credit line for purchases that must be paid back later.
What is the purpose of a credit card?
The difference between the amount owed and the current value of the home
What is equity?
A loan specifically used to purchase a vehicle.
What is an auto loan?
This must be completed by all people wishing to take out student loans
What is the FAFSA?
Payment history, credit utilization, length of credit history, types of credit, new credit inquiries
What are factors that impact your credit score?
The maximum amount of credit that a lender will extend to a borrower.
What is a credit limit?
Private Mortgage Insurance (PMI)
What is a type of insurance you need if you have less than 20% down on a mortgage?
Credit score, loan term, the type of vehicle, and lender policies.
What factors can influence the interest rate for an auto loan?
Direct Subsidized Loan, Direct Unsubsidized Loan, PLUS Loan.
What are the types of federal student loans?
A detailed report of an individual's credit history prepared by a credit bureau
What is a credit report?
The cost of borrowing money, typically expressed as an annual percentage rate (APR).
What is interest on a credit card?
A fixed-rate mortgage has a constant interest rate, while an adjustable-rate mortgage can change over time.
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
To help the borrower qualify for the loan or secure a better interest rate.
What is the purpose of a cosigner on an auto loan?
The cancellation of some or all of a borrower's debt under specific conditions.
What is loan forgiveness?
A range from 300 to 850
What is the range of a typical credit score?
A secured credit card requires a cash deposit as collateral, while an unsecured card does not.
What is the difference between a secured and unsecured credit card?
An upfront payment made when purchasing a home, usually a percentage of the purchase price.
What is a down payment?
The length of time over which the loan is to be repaid.
What does the term "loan term" refer to?
A period after graduation or leaving school during which no payments are required.
What is the grace period for student loans?
This can lead to lower interest rates and better loan terms.
What is a benefit to having a higher credit score?
A credit card that offers rewards, such as cash back or points, for purchases made.
What is a reward credit card?
The process of paying off a loan over time through regular payments.
What is amortization?
Leasing is a long-term rental, while buying means you own the vehicle outright.
What is the difference between leasing and buying a car?
This type of student loan does not accrue interest while the borrower is in school
What is subsidized federal student loans?