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Module 2- Borrowing review By: Luke DeFilippo Flashcards | StudBud
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Module 2- Borrowing review By: Luke DeFilippo
Module 2- Borrowing review By: Luke DeFilippo
20 terms
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StudBud Administration
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17 plays
Personal Money Management
Flashcards
20 cards
F
Practice quiz
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Host live
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Questions
20
Answers
1
Is your car considered collateral?
True
False
2
What is the difference between instant gratification and delayed gratification?
Willingness/ Unwillingness
what you get in return.
3
Who looks at your credit report?
Employers
Lenders
Businesses
4
College tuition and expenses,
Car Loans
Cash Loans
Mortgage
Student Loans
5
Someone agrees to repay the debt if you don’t
Best Friend
Cosigner
Legal Guardian
Parent
6
Can you take steps to protect your identity?
False
True
7
What is the entire amount of money you owe to lenders?
debt
annual fee
cash- advance fee
down payment
8
What is credit score?
Record of your behavior to borrowing and repaying loans.
Record of your personal credit and financial transactions.
Rating used to determine how much credit can be extended.
The score to the credit game.
9
What do loans do?
amount of money you pay to use someone else’s money
Make large purchases such as a car or house.
charge for withdrawing cash on your credit account
actual dollar cost of using credit to maintain a balance
10
How to calculate average monthly payment?
SUM
PMT
11
what is borrowing a specific amount of cash to repay later by a set date?
Annual Fee
Finance Charge
Cash Loans
Student Loan
12
A mortgage can be paid off in 15-30 years?
true
false
13
What is a grace period?
money you pay upfront to reduce the loan amount
final payment date of a loan
time you have before you start accumulating interest
amount of money borrowed
14
What is Credit history?
Record of behavior related to borrowing and repaying loans
record of your personal credit and financial transactions
amount of money borrowed
paying your bills on time
15
The ability to repay your loan.
Capital
Capacity
16
What is Bankruptcy?
Legal process to get out of debt.
You go broke
allows you to repay many of your debts over a period of time
allows you to erase most of your debt but must be low income
17
What is revolving credit?
A credit card that can be used anywhere.
A large purchase like a car loan.
length of time you have to pay off the loan.
Amount of money borrowed.
18
Promise to pay for services used each month.
Service Credit
Term
Origination Fee
Down Payment
19
Yearly charge for the privilege of using a credit card
Annual Fee
Cash-Advance Fee
Down Payment
Authorized User
20
Protects you from harassment by creditors.
You agree to not let anyone else use your credit card
Truth and Lending Act
Fair Debt Collection Practices Act
