Loan and Credit Flashcard

Front

What factors may be considered when applying for a loan?

Back

Income amount and credit score

Front

Installment loans are loans in which

Back

the amount borrowed and the payment amount are set (unchanging)

Front

Revolving loans are loans in which

Back

the amount borrowed and the payment amount may change each month.

Front

Why is it encouraged to get a pre-approval for a car loan? Getting a pre-approval on a car loan helps you on_

Back

staying on your budget

Front

Which type of interest is better to have on a student loan? Simple interest (pay interest on the borrowed amount), Compound interest (pay interest on the interest you owe)

Back

Simple interest (pay interest on the borrowed amount)

Front

A credit score is _______________________________?

Back

a three digit number determined by how you use accounts at a bank or credit union

Front

What are the minimum and maximum credit scores?

Back

300-850

Front

Anything above ______ is considered a good credit score.

Back

690

Front

To maintain a good credit score, one should stay below what percentage of your credit limit?

Back

30%

Front

What are the two factors considered when determining your credit score?

Back

Existing debt and repayment history