Credit
The ability to borrow money now with the agreement to repay it later, usually with interest.
What is credit?
If Perron had a credit limit of $1,000 and he used $450, should he buy a $1,000 gaming chair or pay off his debt?
He should pay off his debt.
What type of bank is IThink Finacial?
A credit union.
Why shouldn't loans be considered free money?
Because they put you in debt!
Is debt always bad?
NO
A three-digit number that estimates how likely you are to repay borrowed money.
What is credit score?
If you had 95 pumpkin pies what would happen to them?
Nothing because you did nothing with them!
What type of savings account would Mckenna have to open if she wanted to buy a $4000 car.
What is a CD?
A short-term, high-cost loan that uses your vehicle's title as security, or collateral.
What is a title loan?
A repayment plan when people can no longer pay off their debt to get a fresh start.
What is bankruptcy?
A history of an individual's borrowing and repayment activity, used by lenders to assess risk.
What is credit report?
If Mrs. Singer put $25 in her ROTH ira account each week, how much money would she have by week 8 if the interest rate was 3%.
What is $206 buckaroos?
An investment account you set up yourself to save for retirement using money you have already paid taxes on.
What is a ROTH ira?
A small, short-term, high-cost loan designed to be repaid in full on your next payday.
What is a payday loan?
Shows lenders you have a history of missed payments or high debt.
What is a damaged credit score?
If Peter were to miss a payment for his credit card, what would happen?
His credit score will greatly drop.
What is big, red, and juicy?
What is a watermelon?
Karl opened a CD account to buy an e bike. Was that the right choice?
No because it is not as flexible as a high yield savings account.
A type of contract where you lease a property for a set period before having the opportunity or obligation to buy.
What is a rent to own?
A debt-reduction strategy where you pay off your balances from smallest to largest
What is a debt avalanche?
1. Pay in full monthly
2. Keep utilization low
3. Never miss a due date
What are the 3 golden rules of a personal credit card?
Bodhi is in $745 in debt and forgets his monthly payment and it goes up to $797. What percent did it go up by.
A type of bank or credit union deposit account that mixes features of both savings and checking accounts.
What is a money market account?
If Jessa took a 300 dollar loan from the bank, how much would the bank charge if the interest rate was 4% per month at 3 months of not paying.
$336
This type of debt is backed by an asset acting as collateral, such as a house for a mortgage or a car for an auto loan, which the lender can seize if you don't pay.
What is a secured debt?