FINANCIAL mixed review credit cards and consumer credit

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What is consumer credit?

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Consumer credit is a type of credit that allows individuals to borrow money to purchase goods and services, typically with the agreement to pay back the borrowed amount plus interest over time.

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What is an installment loan?

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An installment loan is a type of loan that is repaid over time with a set number of scheduled payments, usually consisting of both principal and interest.

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True or False? The longer the loan term, the less total interest you pay.

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False

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What is an auto loan?

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An auto loan is a type of consumer credit specifically used for purchasing a vehicle, where the vehicle itself serves as collateral for the loan.

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What does it mean to make a down payment?

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A down payment is an initial payment made when purchasing a big-ticket item, which reduces the amount of money that needs to be financed.

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Calculate the total amount paid back on a $2300 bobsled with a $450 down payment and monthly payments of $93.50 for 24 months.

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Total paid back = $450 + ($93.50 * 24) = $2694.

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What is a FICO score?

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A FICO score is a credit score that lenders use to assess an individual's creditworthiness, based on their credit history.

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

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A debit card withdraws money directly from a checking account, while a credit card allows you to borrow money up to a certain limit to make purchases.

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What is the total of monthly payments if you pay $381.62 for 60 months?

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Total of monthly payments = $381.62 * 60 = $22,897.20.

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What is the purpose of a personal loan?

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A personal loan is a type of unsecured loan that can be used for various personal expenses, such as debt consolidation, medical bills, or home improvements.