Ch 4 Credit (Summative) Flashcard

Front

Something that credit card commercials don’t show you is . . .

Back

People making payments for months or years on those credit card purchases

Front

When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations.

Back

False

Front

Banks and lenders use credit scores to determine . . .

Back

The likelihood that someone is able to repay debt

Front

_______________ require the borrower to put up collateral for the loan.

Back

Secured loans

Front

There are certain things, like renting a car or booking a hotel room, that you cannot do without having a credit card.

Back

True

Front

Leasing a car is a method of financing where someone __________.

Back

Makes monthly payments on but does not own the vehicle

Front

Which is an example of an appreciating asset? Options: A computer used for business purposes, A new car purchased within the past 6 months, A piece of farming equipment, A home

Back

A home

Front

Car lease agreements come with a stipulation that you must pay a penalty if you ____________.

Back

Go over the pre-established mileage cap

Front

The debt snowball method involves . . .

Back

Paying off debts from smallest to largest

Front

Predatory lenders get their negative reputation from . . .

Back

Charging high fees for loans and targeting desperate people