Topics Consumer Finance

Front

What is a fixed-rate mortgage?

Back

A fixed-rate mortgage is a type of loan where the interest rate remains constant throughout the term of the loan, resulting in stable monthly payments.

Front

What is the benefit of paying off a credit card balance in full each month?

Back

Paying off a credit card balance in full each month allows the cardholder to avoid interest charges, effectively acting as a short-term interest-free loan.

Front

What happens if you only make the minimum payment on a credit card?

Back

Making only the minimum payment on a credit card leads to higher interest charges over time, making it more difficult to pay off the balance.

Tags

CCSS.7.RP.A.3

Front

What is the typical term length for a fixed-rate mortgage?

Back

Common term lengths for fixed-rate mortgages are 15, 20, or 30 years.

Front

How can a consumer avoid paying interest on a credit card?

Back

A consumer can avoid paying interest on a credit card by paying the full balance by the due date each month.

Front

What is the APR in a mortgage?

Back

APR stands for Annual Percentage Rate, which represents the yearly cost of borrowing, including interest and fees, expressed as a percentage.

Tags

CCSS.7.RP.A.3

Front

What is the impact of a higher credit score on borrowing?

Back

A higher credit score can lead to better loan terms, such as lower interest rates and higher credit limits.

Front

What is the difference between a secured and unsecured credit card?

Back

A secured credit card requires a cash deposit as collateral, while an unsecured credit card does not require a deposit and is based on the borrower's creditworthiness.

Front

What is the purpose of a credit report?

Back

A credit report provides a detailed account of an individual's credit history, including credit accounts, payment history, and outstanding debts, used by lenders to assess creditworthiness.

Front

What is a mortgage payment schedule?

Back

A mortgage payment schedule outlines the amount and frequency of payments due on a mortgage, typically including principal and interest.