Credit Scores
4. Your ____ is like a report card that shows how well you've paid back money in the past.
credit history
2. Jamal uses his __________ to buy groceries, and the money comes straight out of his bank account.
debit card
1. A(n) _______ is money you borrow now and agree to pay back later, often with interest.
loan
5. To help his daughter get approved for a loan, Mr. Torres agreed to be a(n) ____________ , promising to pay if she didn’t.
co-signer
9. Emma checked her ____________ before applying for a loan to make sure it was high enough to get approved.
credit score
8. When you only make the _____________ on your credit card, the rest of the balance will continue to grow with interest.
minimum payment
3. Your ____ is the amount of money that you still owe on a loan or credit card.
balance
20a. What is the definition of principal?
The amount of money you are borrowing.
18. Why should you try to have a high credit score?
A high credit score shows lenders you are a responsible borrower, so you are more likely to be approved for loans and get a lower interest rate.
13c. Where can a store credit card (like a Target Credit Card) be used?
Only at that store
(Be sure you marked False for 13c!)
6. Juliane has to pay back her loan in 5 years. This is her _______________.
loan term
20b. What is the definition of interest rate?
A fee for borrowing the money. (for a loan)
19. What is one thing a young person can do to start building credit?
• Get a co-signer on a credit card when they turn 18.
• Start paying for student loans.
• Get a secured credit card.
Be added as an authorized user to a parent/guardian's credit card.
15. Carlos just got his first credit card. What are some things he can do to make sure he uses it responsibly?
• Pay his credit card bill in full and on time
• Treat his credit card like cash to make sure he’s staying within budget
• If he can’t make a payment in full, he should make sure he at least makes the minimum payment
•Make sure he allows extra time for his payment to process
21. The higher your credit score, the more likely you are to qualify for a loan that has a _______ interest rate. This means you’ll end up spending ________ over the course of your loan.
lower
less
7. When Devon became an ____________ on his sister’s credit card, he was able to use the card to make purchases and start building his credit history.
authorized user
17. What are 5 factors that can impact your credit score.
• Payment history
• Capacity
• Length of credit
• New credit
• Mix of credit
14. How are credit cards different from debit cards?
(many different answers...we'll check this together)
12. Identify one pro and one con of borrowing money from family and friends.
Pro = Flexible repayment options, lower or no interest rate/fee...
Cons = Repayment may not be a priority, judgment from family or friends, could cause tension in the relationship...
16.
a. What is the new balance on this credit card?
b. What is the limit on this credit card?
c. What is the minimum payment due?
d. When is the payment due?
a. $380
b. $1500
c. $62
d. June 23