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The details of any loan will include the following 3 components
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Why are secured loans consodered risky to the lender
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personal finance
hi sherin
| Question | Answer |
|---|---|
| The details of any loan will include the following 3 components | principle, interest rate, loan term |
| Why are secured loans consodered risky to the lender | lenders can take valuable collateral if you fail to repay your loan |
| Having a good credit score,making a larger downpayment, and finding a cosigner with good credit are all wasy to.... | decrease your interest rate |
| each of these statements describes a variable rate loan except | is almost always a better option |
| Your friends and you notice a neighbor who always has brand new clothes, shoes, and electronics. What would you need to know in order to tell if this neighbor is actually wealthy? | The value of assets and debt. |
| There’s not 1 target net worth value that is universally considered to be rich or wealthy. But Sanya’s net worth is $12,000.goal is to have net worth of $100,000 . Explain one way that using credit could help Sanya achieve her goal. | A personal loan to start a business, a house, student loan, car loans. |
| Explain one way that using credit could hurt Sanya’s progress. | If the business fails, if you don't finish school, if something happens to your house. |
| Which word represents the total cost of the item you’re purchasing on credit minus any down payment you make upfront? | principal |
| Each of the following represents an installment loan EXCEPT… | credit card |
| Which of these actions would most likely decrease a person’s net worth for at least the next 6 months? | use a loan to buy a brand new car |
| Debit Card | Less fees Limited to checking account Protected by fed law Accessible Affordability atms |
| Credit Card | Build credit Interest debt Protected by fed law Credit breach rewards |
| prepaid debit card | accessible Convenient Cannot access account if stolen fees |
| After watching the video and comparing the cards, which one of the three would be the best option for you as your day-to-day payment method? Explain why. | Debit because it is the most easy and convenient. |
| Which statement is true of both debit AND credit cards? | Both allow you to make purchases in a store or online |
| Felix opens a credit card with no annual fee, so he assumes that using the credit card regularly will be absolutely free for the next two years while he finishes grad school. Why is his assumption incorrect? | Unless he pays the whole bill every month, he will pay interest according to his APR |
| Which statement best describes a Schumer box? | A standardized way of presenting the key terms of your credit card agreement |
| Which best describes how a credit card works? | The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month. |
| What is the advantage of paying your credit card balance in full each month? | You avoid paying any interest and fees |
| What is an outstanding balance? | The amount you still owe after you have made your most recent payment |
| Why is it more difficult to get out of debt when only paying the minimum payment? | The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal |
| The video advises you to "be a deadbeat.” What does that mean? | Pay your credit card bill in full and on time every single month, thus paying no interest or fees |
| If you buy a $1000 bicycle, which credit card payoff strategy will result in your paying the LEAST total amount? | Pay $250 per month until it’s paid off |
| If your credit card limit is $800 and your outstanding balance is $725, what is the largest amount you can charge on that card in the upcoming month? | $75 |
| Each of the following people has $5000 in debt. Which debt is most worthwhile? | It’s impossible to tell, because we don’t know how much they each valued the spending, how much it impacted their lives, or how easily they can repay the debt |
Created by:
isabel777