When purchasing using this option, if you miss a payment the store will take back the item.
Rent to own.
100
What is APR?
Annual Percentage Rate: the interest rate and any fees associated with getting a loan.
100
What is the FAFSA?
Free Application for Federal Student Aid
100
What is collateral?
Security you provide the lender when borrowing money. Examples are a car, home, or money in a savings account.
100
What is credit?
Credit is the ability to borrow money. When you borrow money you promise to pay the money back
200
In addition to tuition, what are some other costs associated with going to college?
Books and supplies, Food and housing, Personal and medical expenses
200
Where can you get a car loan?
Banks/thrifts
Credit unions
Finance companies
Car dealerships
200
What are advantages to getting a college degree?
More career options, better promotion opportunities, higher earnings, and lower unemployment on average
200
What's the difference between a secured and unsecured loan?
A secured loan is a loan where you provide collateral and an unsecured loan is not backed by collateral.
200
Why is credit important?
Can be useful in times of emergencies
Is more convenient than carrying large amounts of cash
Allows you to make a large purchase (e.g., a car or house) and pay
for it over time
Can affect your ability to obtain employment, housing, and insurance
based on how you manage it
300
What is federal work study?
A program that provides part-time work for college students to help pay for college expenses.
300
Getting a car using this option puts a limit on how many miles you can put on the car.
A car lease.
300
What are the three types of Federal Aid for continuing your education?
Grants (gift aid)
Campus-based aid, which is a combination of work, grant, and loan funds
Loans, which must be repaid with interest
300
Name one type of loan.
Credit Card
Installment Loan
Rent to Own
300
What are fees?
Fees charged by financial institutions for activities including, reviewing your loan application and servicing the account.
Examples are:
A credit card company might charge you an annual fee of $30.00.
A credit card company may also charge you a service fee for cash advances or a penalty fee if your balance exceeds your credit limit.
A lender might charge a $30.00 late fee when you do not pay your
bill on time.
400
Which type of loan is used to pay for personal expenses for you and your family?
Credit Card
400
Using this option to buy a car allows you to pay less for the car but you may run into trouble since you are not the first owner.
A used car.
400
What is a scholarship?
Money that is provided to students that do not need to be repaid. Scholarships can be given for academic achievement, success in sports, community involvement, and specific majors.
400
Which type of loan is the following:
The store is the legal owner until you make the
final payment. If you miss a payment the store
may repossess the property, which means they
take the property back from you.
Rent to Own
400
What are the four Cs of credit decision making?
Capacity, Character, Capital, and Collateral.
500
One of the four Cs of credit is Capacity. What is capacity?
Your present and future ability to make monthly payments
500
With this option for buying a car you pay less every month but if you decide you want to keep the car it will end up costing you more.
A lease.
500
What is the difference between a subsidized and unsubsidized student loan?
A subsidized student loan does not accumulate interest if you are enrolled at least part-time until after you finish school. An unsubsidized loan accumulates interest once the loan is paid out.
500
What is interest?
The amount of money that banks charge for you to use their money.
500
Name at least two tips for managing your credit.
Pay off your entire credit card bill each month if possible.
Pay your credit card or loan payments on time to avoid late fees and protect your credit history.
Ignore offers creditors may send you to reduce or skip payments. You will still be charged finance charges during this period.
Think about the cost difference if you purchase your item with cash versus if you purchase your item with credit.