Credit Pt.1-2 Review

Multiple Choice

A common advantage of using credit is:

• Less impulse buying and spending

• Lower cost for items purchased

• Ability to obtains things now any pay later

• Lower chance of overspending

Multiple Choice

Auto loans, mortgage loans, and student loans are all considered:

• Installment Credit

• Forms of Credit

• Fixed Expenses

• All the Above

Multiple Choice

When seeking credit, a person's proof of regular income is an example of their:

• Capacity

• Capital

• Character

• Collateral

Multiple Select

Select each question a lender would ask that would correspond with CHARACTER.

• Have you used credit before?

• How long have you lived at your present address?

• Do you have a steady job?

• Do you pay your bills on time?

• Do you have a savings account?

Multiple Select

Select each question a lender would ask that would correspond with CAPACITY.

• Have you used credit before?

• What are your current debts and living expenses?

• Do you have a steady job?

• Do you pay your bills on time?

• Do you have a savings account?

Multiple Choice

Using the 20-10 rule, a person earning $1500/mo. should not have monthly credit payments that exceed:

• $300

• $150

• $15

• $500

Word Cloud

Credit ratings range from Poor, Fair, Average, Good, and Excellent.
What would be considered a FAIR credit score?

Multiple Choice

FC=PRT

What is the principal?

• The cost of borrowing money

• The interest amount over the term of the loan

• The period or span of a loan

• The loan amount requested

Multiple Choice

How do you find the total cost of a loan?

• Total Cost of Loan =
  _{Principal + Down Payment}

• Total Cost of Loan =
  _{Principal + Finance Charge}

• Total Cost of Loan =
  _{Principal + Car Value}

• Total Cost of Loan =
  _{Down Payment +
  Finance Charge}

Multiple Choice

How do you calculate the monthly payments of a car loan?

• Monthly Payments =
  _{Total Cost of Loan / Principal}

• Monthly Payments =
  _{Finance Charge / Term}

• Monthly Payments =
  _{Total Cost of Loan / Finance Charge}

• Monthly Payments =
  _{Total Cost of Loan /
  Term}

Open Ended

_{To answer, you are welcome to type in your responses, or if you wrote on paper you may take a picture and upload}

Ray purchased a brand new Mustang GT that was listed at $30,920. He was able negotiate the price down by $3,000 due to his good credit history. In the effort to pay off the car faster, Ray accepted a shorter term of 3.5 years with a 0% APR for the first 6 months and 2.7% after the six-month period.

CV =

P =

FC =

TCL=

MP =

Multiple Choice

What is a minimum payment?

• The monthly interest amount paid toward a loan

• The lowest amount paid toward a loan to avoid default status.

• Both A & B

• Any payment higher than the finance charge but lower than the principal amount.

• None of the Above

Open Ended

_{To answer, you are welcome to type in your responses, or if you wrote on paper you may take a picture and upload}

Alecia wanted to buy a small van for her cupcake catering business. She found a van listed at $17,000 with a 3.33% APR for 4.5 years. Due to using her business credit, she was not required to pay a down payment. Solve below.

CV =

P =

FC =

TCL =

MP =

Min =

Multiple Choice

Which of the following is worth 15% of credit decisions?

• New Credit

• Amounts Owed

• Length of Credit

• Types of Credit

Word Cloud

Questions, Comments, Concerns--

Emotional outbursts?

Poll

Are you still confused with calculating car payments?

• Yes

• Somewhat

• No

Poll

If you were tested on ALL THINGS CREDIT right now, how prepared do you feel?

• Very prepared

• Mostly Prepared

• Somewhat Prepared

• Not Prepared