Amortization
Credit Utilization
Credit and BNPL
100
Which stays the same for an amortized loan?
A) the interest paid each month
B) the principal paid each month
C) the payment paid each month
C-- the payment
100
Ideally, what should your credit utilization rate be less than?
30%
100
What is the most important factor in your credit score?
Paying on time
200
What are the two parts of an amortized payment?
interest and principal
200
John has a credit card with a credit limit of $3900 and a current balance of $2200.
What is his credit utilization ratio?
56%
200
What is the second most important factor in your credit score?
amounts owed/credit utilization
300
What is the interest paid in month 3?
$14.88
300
John has a credit card with a credit limit of $3900 and a current balance of $2200.
If he opens a new card with a credit limit of $7000, what is his new credit limit?
$9200
300
Which type of credit is easier to qualify for: credit card or Buy Now, Pay Later?
BNPL
400
What is the principal paid in month 5?
$38.28
400
John has a credit card with a credit limit of $3900 and a current balance of $2200.
If he opens a new card with a credit limit of $7000, what is his new credit utilization rate?
42%
400
Why do retailers partner with BNPL companies? (Hint: think about how it affects customer behavior)
Customers tend to spend more than they otherwise would have
500
What is the ending balance in month 7?
$49.52
500
John has a credit card with a credit limit of $3900 and a current balance of $2200. He then opens a new card with a credit limit of $7000. If he pays of $800 of his credit card debt, what is his credit utilization rate now?
33.7%
500
Name a BNPL company
affirm
afterpay
Klarna