Unit 4 NGPF Review Credit

Front

What is one benefit of borrowing money from a friend or family member instead of from the bank?

Back

Friends and family will typically work with you to set up a repayment plan you can afford.

Front

What’s a potential downside of asking his friend Kylie for a loan?

Back

It might cause problems in their friendship if Justin doesn't repay her on time or if he then asks for even more money.

Front

What is the key difference between a credit card and a debit card?

Back

Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account.

Front

Craig isn't sure if he should open up a credit card account or get a bank loan. What question is MOST useful in helping him decide which financial product he should get? Are you trying to make a bunch of small purchases over time or one large purchase?

Back

Are you trying to make a bunch of small purchases over time or one large purchase?

Front

What's one reason Kervin should be careful about using credit for buying a new bike?

Back

Credit will charge him interest every month until he repays his full balance.

Front

Which statement about credit card interest rates is TRUE? Options: The more money you spend on purchases, the higher your interest rate will be; A high interest rate means you'll pay MORE money total; A high interest rate means you'll pay LESS money total; Most credit cards do not charge any interest rate.

Back

A high interest rate means you'll pay MORE money total

Front

Which age group tends to have the most credit card debt?

Back

Middle-aged people

Front

What is the best way to avoid going into large debt on your credit card?

Back

Pay your full balance every month

Front

Each of the following factors impacts your credit score EXCEPT... Payment history, Mix of credit types, Length of credit history

Back

Bank account balance

Front

Katherine has been using her credit card very responsibly in hopes of raising her credit score. Which score would indicate that Katherine now has a prime score?

Back

750