Loans
Where do banks get the money to lend out to customers?
From their clients' savings accounts.
Name one type of credit
Mortgage
Auto Loan
Credit Card
Personal Loan
Student Loan
Should you have a high credit score or a low credit score for a lower interest rate?
High credit score
Amount of time to pay back a loan
Term
When is Mrs. Phillips birthday?
February 12
How do banks make money off the credit they issue?
What's the difference between credit cards and debit cards?
A credit card is borrowed money that you must pay back with interest. A debit card is linked to your checking account with no interest.
Why does the amount of interest you owe on a loan decrease over time?
With each payment, principal decreases, and interest lowers.
Principal
What is Mrs. Phillips ' husband's name?
Cole
When can a personal loan be a better option than credit cards?
If you want a lower interest rate.
How do you avoid paying interest on your credit card (or any loan)?
Always make the full payment on time.
What is a variable interest rate?
Changes every month.
Combining your property taxes and insurance with your monthly mortgage is called...
Escrow
What is Mrs. Phillips ' daughter's name?
Jacey
How does a shorter loan term affect your monthly payment?
Shorter term, higher monthly payment.
What type of credit allows you to borrow up to a limit repeatedly as you repay it?
Revolving credit
How do you avoid paying interest on your credit card (or any other loan)?
Always make the full payment on time.
What is a cosigner?
A person who signs a loan or lease with another in order to guarantee payment.
What year did Mrs. Phillips' graduate high school?
2012
What is the difference between a secured loan and an unsecured loan?
A secured loan requires collateral, and an unsecured loan does not.
What is the purpose of a Schumer box when applying for a credit card?
What are the two types of interest rates?
Fixed
Adjustable/ Variable
You make monthly payments on both.
What are Mrs. Phillips' dogs' names?
Dolly and Waylon