Chapter 4

Front

Something that credit card commercials don't show you is ...

Back

People making payments for months or years on those credit card purchases

Front

When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations.

Back

False

Front

Banks and lenders use credit scores to determine ...

Back

The likelihood that someone is able to repay debt

Front

Making purchases with a credit card means that you're borrowing money with interest, and _______ pay much higher interest rates.

Back

Young people

Front

When you finance a new car, you will end up paying more than the sticker price.

Back

True

Front

While it may not always appear so, the majority of Americans live paycheck to paycheck.

Back

True

Front

________ require the borrower to put up collateral for the loan.

Back

Secured loans

Front

Which of the following is part of the formula that determines a person's FICO score?
- Their income level during a one year period
- The percent of income that they invest into mutual funds
- The dollar amount in their savings funds
- Their history of payments made to lenders

Back

Their history of payments made to lenders

Front

There are certain things, like renting a car or booking a hotel room, that you can not do without having a credit card.

Back

False

Front

Your greatest tool to building wealth is ______

Back

Your income