Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Money Matters
Review
| Question | Answer |
|---|---|
| The two basic forms of credit most commonly used are: | 1. Credit card 2. Installment loan |
| The _____ __________ ____ is the percentage of interest you pay on an annual basis based on how much you have borrowed. | annual percentage rate |
| You must pay at least the _______ _______ each month to avoid late charges and lowering your credit rating. | minimum payment |
| When you _______ on a loan or a credit card, this means you have stopped making payments, usually because you are unable to afford the payments. | default |
| For instance, while most credit cards and debit cards have 16-digit account numbers, ________ _______ only has 15-digit account numbers. | American Express |
| The first ___ ______ show which company has issued the card. | six digits |
| If you have a credit limit of 500 dollars on your card, and you try to charge more than this amount before you have paid your bill, one of the two things will happen. | 1. Either the merchant will be told that the purchase cannot be approved. 2. The credit card company will approve the charge, but will charge you on an "over-the-limit" fee. |
| Three things affect your credit card costs: | 1. Annual fees 2. Finance charges 3. Grade periods |
| If you do not pay your balance in full each month, you are _______ ________ for the amount you did not pay. | charged interest |
| If your payment arrives, even one day after the due date, you will be charged a ____ _______ ___. | late payment fee |
| late payment fee ___ to ___. | 500 to 810 |
| This is an overall score assigned to your account by the credit bureaus. The ______ the number is, the ______ your rating is. This means, the ______ your credit rating is, the _____ your interest rate will be. | higher, better, better, lower |
| _____ ____ is the interest rate used by most banks and based on the federal fund rate. | Prime rate |
| The _______ _______ represents how much is still owed on your account from the previous month’s statement. | opening balance |
| Your _______ _______ represents how much is owed on your account after your most recent payments and purchases are taken into account. | closing balance |
| You have up to __ ____ from the date of the transaction to contact the credit card company or lender about the possible error. | 60 days |
| The most you will be liable for is __ _______ of charges someone else makes on your account. | 50 dollars |
| If you are no longer using a credit card, you should cancel it so the credit limit available to you through this particular credit card company does not affect your ______ ______. | credit rating |
| Keep your ___ in a safe place and never write it on your card. | PIN |
| There are three national credit bureaus: | 1. Equifax 2. Experian 3. Transunion |
| Individuals are allowed to get a copy of their own credit report for free ____ a year from each of these national credit bureaus. | once |
| There are two major components which make up your credit history: | 1. Consumer credit information 2. Public records |
| Public records which are kept on your credit history include: | negative information, such as if you filed for bankruptcy, experienced a foreclosure on your home, have had a tax lien placed on your assets by the federal, state or local government, and by court judgments. |
| 24. There are _ main criteria credit bureaus use to determine your credit rating or score. | 5 |
| These five criteria are: | 1. Payment history 2. Total amount you owe 3. Length of credit history 4. How much new credit 5. What types of credit |
| ________ _____ are normally used for various types of big ticket purchases individuals routinely make. | Personal loans |
| The difference between a bank or installment loan and a credit card payment: | installment loan is a fixed payment for a specific amount, and you are going to pay it over however many years and the term is also fixed, whether it be two years or five years |
| The _________ is the actual amount of money you borrowed from the lender for your purchase. | principal |
| The ________ ____ can be fixed or it can be adjustable.The interest rate can be fixed or it can be adjustable. | interest rate |
| A _____ ____ means the interest rate set at the time you take out the loan will be the interest rate you pay throughout the entire term of the loan. | fixed rate |
| An __________ ____ may change during the term of the loan. | adjustable rate |
| The ____ is the length of time the loan is set up for you to pay it back. | term |
| When you put up collateral for a loan, it is said to be a ______ ____. | secure loan |
| __________ is an asset, usually what is being purchased, which the bank owns the rights to until the loan is paid in full. | Collateral |
| An _________ ____ is one where the money is loaned to an individual simply on their reputation, sometimes called a _________ ____ because all the bank has is the individual’s signature on the loan document agreeing to pay back the loan plus interest. | unsecured loan, signature loan |
| With a ____ ___, you get the principle of the loan you borrowed. | lump loan |
| There are three basic fees you may pay when you take out a loan: | 1.application fee 2.credit history fee 3.attorney fee |
| We also look at how much they make relative to how much they are obligated for. That is called a | debt-to-income ratio |
| The term of your loan plays an important role in calculating the _______ ____ of your loan. | overall cost |
Created by:
Mrs. Eaton-Maddox
Popular Business sets