Credit & Credit Score
Paying bills on time.
What is 1 out of the 3 things credit scores are based on?
APR stands for.
What is Annual Percentage Rate.
If you only pay this amount on your credit card each month, most of your payment goes toward interest rather than reducing your principal balance.
What is a Minimum Payment?
This variable represents the decimal form of the annual interest.
What is the rate?
The amount of squares on a chessboard.
What is 64 squares.
You borrow $1,000 at 10% simple interest for 2 years. Calculate the total amount you must pay back.
What is $1,200? ($1,000 + $200 interest)?
Amount of money you owe to somebody.
What is debt?
DOUBLE JEOPARDY!
You have a credit card balance of $2,000 with an APR of 24%. If the interest is charged monthly and you make no new purchases, what will your total balance be after exactly two months of making NO payments?
What is $2,080.80?
In the formula , A = P(1+ r/n)nt
the letter "P"represents the initial amount of money borrowed or invested.
What is Principle?
Is borrowed money that you promise to pay back.
What is Credit?
A credit score of over 740 is considered.
What is an "excellent" credit score?
Unlike simple interest, APR includes the interest rate plus these additional costs of borrowing.
What are fees (or closing costs)?
If a loan has a 12% APR, this is the Periodic Interest Rate used to calculate interest for a single month.
What is 1%?
This variable represents the number of times interest is calculated and added to the account per year.
What is N, or Compounding Periods?
The month of my birth.
This factor accounts for 35% of your FICO score and tracks whether you pay bills on time.
What is Payment History?
This measures how long you've been borrowing money and paying it back. If you've been responsible for many years, banks trust you more.
What is the Length of Credit?
This term describes the decrease in the amount of goods or services that one dollar can buy over time.
What is Purchasing Power?
This variable represents the duration of the loan or investment, usually measured in years.
What is t (Time)?
The NFL Team(s) with the most championship wins.
Who are the Patriots & Steelers tied with 6 championship wins?
FICO scores typically range between these two numerical values.
What are 300 and 800?
The formula for Calculating Simple Interest.
I = P * R * T ?
A $500 payday loan charges $15 for every $100 borrowed for a 2-week period. Calculate the total cost to repay the loan in 14 days.
What is $500 principal + $75 fee = $575
If a bank compounds interest 'quarterly,' this is the numerical value of the variable n.
N = 4.
NBA player with the most points scored.
LeBron James