Vocabulary
The amount of time you have to pay back a loan is called the __________
What is term
A ________ is a number that indicates the likelihood of someone repaying debt.
What is a credit score
Your most powerful wealth building tool is your ____.
What is income.
The debt snowball method involves paying off your debts from....
What is smallest to largest
T or F. A car is a depreciating asset
What is true
When you fail to repay a loan on time, you're referred to as being in ___________
What is default
A (n) ____reports on a person's credit history
What is a credit bureau
There is no credit cards prior to ____
What is 1958
A(n) _______ loan requires the borrower to put up collateral for the loan.
What it is a unsecured loan
A homeowner who takes out a home equity line of credit (HELOC) can only use the loan for home repairs and renovations. T or F?
What is false
If a loan isn't repaid, the _______ of the borrower- used as security for the debt- could be sold by the lender
What is collateral
T or F ....Young adults pay a much higher interest rate compared to older adults.
What is true
What percentage of your credit score does debt payment history account for?
What is 35%
Name four different types of fees a credit card company can charge.
What is interest, cash advance fees, annual fees, late payment fees, over- the -limit fees, merchant fees, balance transfer fee, returned payment fee
The third foundation is.....
What is pay cash for your car
The __________ is the total amount of the car loan, plus taxes and fees.
What is principal
A type of credit that has fixed payments over the length of the loan
What is installment credit
What is the average college student's credit card debt?
What is $1400
An example of __________ means you owe more money on the loan than the car is worth
What is negative equity
______ a car is a method of financing where someone makes monthly payments on but does not own the vehicle
What is leasing
A legal claim against an asset until the debt is repaid
What is lien
Name the 3 credit bureaus
What is equifax, transunion, experian
What percentage of Americans are living paycheck- to- paycheck?
What is 78%
Credit card companies charge stores 2-3% fee for every purchase made with a credit card. This is called a(n) ____________
What is merchant fee
Credit cards that offer flashy rewards like airline miles often charge a....
What is a high annual fee