finance tips &
vocabulary
vocabulary
When using this card your are not borrowing; you are using your own money.
Debit card
If you owe money to someone, you are the ________.
What is borrower or debtor?
This person guarantees repayment of a loan in case a borrower defaults...
What is a co-borrower/co-signer/guarantor?
A bank account you use to save money...
What is a savings account?
The simple interest formula
I=PRT
Paying on time is the most significant factor for determining your...
What is credit score?
When you don't pay on a loan...
What is default?
When a bank takes back your house due to non-payment...
What is foreclose?
Bad credit can mean you get turned down for a .....? (provide 1 example)
What is an apartment, auto loan, low interest rates for credit, and even a job?
If the rate is 4.5%, how should that be written in for interest formula?
0.045
True or False: You should always pay only the minimum amount due on a credit card.
False. Always pay more to reduce the interest paid.
Experian, Equifax, Transunion
What are the credit reporting agencies
Information stays on your credit report for approximately how long?
What is 7-10 years?
Move money between bank accounts...
What is transfer?
How would you write 6 MONTHS in the interest formula?
1/2 or 0.5
Originally Fair, Isaac and Company, is a data analytics company focused on credit scoring services. It is a score that measures consumer credit risk. It ranges 300-850.
What is FICO
How banks make money on credit (money loaned)
What is interest?
There are two types of interest. This is the one that is calculated based on the original principal.
What is simple interest?
What does EACH variable stand for in the simple interest formula ( I=PRT )
I= interest, P=principal, R=interest rate, T=time (in years)
What is the Compound Interest Formula?
A=P(1+r/n) nt
The amount of your paycheck before taxes and other items are deducted.
What is a gross pay?
A new car loses value as soon as it is driven off of the lot. This is known as...
What is depreciation
This type of interest is calculated based on the principal plus the interest that is accumulated (interest on interest)
What is compound interest?
Viv borrows $1,500 from her uncle for 9 months at 5%. What’s the TOTAL amount she’ll pay back to her uncle? (use I=PRT)
$1,556.25
What does compounded quarterly mean?
Compounded 4 times a year OR n = 4