U2 P5 Introduction to Consumer Credit 2025

Front

________allows you to purchase something right now that you are unable to pay for upfront. You have to borrow money from a lender and pay it back

Back

Credit

Front

A number that represents the risk a financial institution will take in loaning a person money

Back

credit score

Front

Bureaus consider the number of credit accounts, outstanding debt, collections accounts, and bill paying habits to create your score.

Back

True

Front

Whether you will be approved for credit, and how much credit will be awarded is determined by your credit reports.

Back

True

Front

Paying your bills on time will not help your credit score.

Back

False

Front

Credit allows you to?

Back

Purchase an item right now and pay for it later.

Front

What is a credit score?

Back

A number that represents the risk a lender takes on a borrower.

Front

If you want to buy a house that cost $800,000 and the bank requires a down payment of 20%, what is the down payment?

Back

$160,000

Front

Joe wants to purchase an electric keyboard priced at $2,744. He can save $175 per month. How long will it take him to save for the keyboard?

Back

about 16 months

Front

Tara purchases a professional racing bicycle that sells for $5,400, including tax. It requires a $200 down payment. The remainder, plus a finance charge, is paid back monthly over the next 2.5 years. The monthly payment is $215.75. What is the finance charge?

Back

$1,272.50