W29 MATH 6.14 Understanding Banking and Credit Basics

Front

What is a positive credit history?

Back

A record of a person's responsible borrowing and repayment of debts, which can lead to better loan terms.

Front

What are the benefits of having a positive credit history?

Back

Lower interest rates on loans, easier approval for rental applications, and higher credit card limits.

Front

What is a credit report?

Back

A detailed report of an individual's credit history, including credit accounts and payment history.

Front

Why is it important to have a good credit score?

Back

It helps you qualify for loans with better interest rates and terms.

Front

What is a 529 savings plan?

Back

A tax-advantaged savings plan designed to encourage saving for future education costs.

Front

What is a scholarship?

Back

A financial award given to a student to help pay for their education, often based on academic or other achievements.

Front

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

Back

A credit card allows you to borrow money up to a limit, while a debit card uses your own money from your bank account.

Front

What is interest?

Back

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Front

What does it mean to take out a loan?

Back

To borrow money from a lender with the agreement to pay it back, usually with interest, over a specified period.

Front

What is a mortgage?

Back

A type of loan specifically used to purchase real estate, where the property serves as collateral.