Good Credit
This three-digit number summarizes your creditworthiness.
What is a credit score?
This is the cost of borrowing money expressed as a yearly percentage.
What is APR?
This is the loss in value of a vehicle over time.
What is depreciation?
This monthly payment is made to live in a property you do not own.
What is rent?
This is protection against financial loss.
What is insurance?
Paying bills on time primarily affects this factor in your credit score.
What is payment history?
This is the maximum amount you are allowed to borrow on a credit card.
What is a credit limit?
Buying a used car often reduces this financial loss compared to new cars.
What is depreciation?
This upfront payment is typically required when renting an apartment.
What is a security deposit?
This is the amount you must pay out-of-pocket before insurance coverage begins.
What is a deductible?
If you consistently use 90% of your credit limit, this part of your score is negatively affected.
What is credit utilization?
Carrying a balance month-to-month results in paying this.
What is interest?
A loan with a longer term usually results in this overall cost outcome.
What is higher total interest paid?
Spending more than 30% of income on housing is generally considered this.
What is unaffordable / cost burdened?
Choosing a higher deductible typically results in this change to premiums.
What is lower premiums?
Closing old credit accounts can negatively impact your score because it affects this factor.
What is length of credit history?
Payday loans are considered risky because of this characteristic.
What is extremely high interest rates (APR)?
Leasing a vehicle instead of buying may be advantageous when considering this factor.
What is lower monthly payments / short-term use?
Fixed-rate mortgages differ from adjustable-rate mortgages in this key way.
What is interest rate stability over time?
Liability coverage protects against this type of financial risk.
What is being responsible for damages or injuries to others?
Explain how improving your credit score can reduce the total cost of borrowing.
What is qualifying for lower interest rates, reducing total interest paid?
Evaluate why making only minimum payments leads to long-term financial harm.
What is accumulating interest and prolonged debt repayment?
Analyze the trade-offs between financing and paying cash for a major purchase.
What is liquidity vs. interest cost?
Evaluate the financial advantages and disadvantages of renting vs. owning.
What is flexibility vs. equity building and maintenance costs?
Explain how underinsuring can create significant long-term financial risk.
What is exposure to large out-of-pocket losses exceeding coverage?