Cards
These pull money directly from your checking account, so you are spending your own money at the point of sale
Debit Cards
An auto loan is (Secured/Unsecured) debt because the car serves as collateral
Secured
A specific type of installment loan used to purchase a home
In an amortized loan, the total monthly payment amount remains constant because the payment is (blank)
Fixed
Short-term, high-interest loans that often have an average APR of 400%
Pay Day Loan
The maximum amount of money that can be charged to a specific credit card
Credit Limit
An upfront sum that reduces the principal and lowers monthly payments
Down Payment
This mortgage has an interest rate that remains constant for the entire term.
Fixed-Rate
The portion of the payment applied to interest (Increases/Decreases) over time as the principal balance drops.
Decreases
Payday loans are easier to get because they require proof of income but do not require a (blank)
Credit Check
Unlike debit, this allows for emergency purchases without immediate cash by providing a loan to be paid back later
Credit
A high (blank blank) helps you qualify for the lowest interest rates
Credit Score
A mortgage with an interest rate that stays fixed for a few years then fluctuates based on market conditions.
ARM or Adjustable Rate Mortgage
The portion of the payment applied to the principal (Increases/Decreases) over the life of the loan
f not paid in two weeks, payday loans are renewed with high penalty fees, leading to a debt ________.
Cycle
The period (usually 25 days) after the billing cycle ends where no interest is charged if the balance is paid in full
Grace Period
Choosing a longer term length results in the (Lower/Higher) monthly payments
Lower
Amy’s higher payment is likely because she chose a (shorter/longer) term (e.g., 15 years vs. 30 years), which pays the loan off faster.
Shorter
Extra payments are applied to the (Blank), which reduces the total interest and shortens the loan.
Principal
The standardized table where all credit card interest rates and fees must be listed.
A (blank) box
Schumer (Box)
Explain 2 pros and 2 cons of using a credit card over a debit card
While a long term lowers monthly payments, it increases the total blank paid over the life of the loan
Interest
What 3 things do you need in order to save the most money when house shopping?
The process of paying off debt in regular installments over a set period
Amortization
Companies prefer (blank) payments because it takes longer to pay off the debt, allowing them to collect more interest.
Minimum