Topic 6a Borrowing

Which one of the following is a sensible lender

• Bank or building society
• Loan shark
• Pay day loan company
• Store credit card

What is the difference between a store card and a loyalty card?

• A loyalty card gives you points when you shop in that store, a store card lets you buy from them but you pay later.
• Store cards give you points.
• Loyalty cards give you free credit

APR stands for

• Annual Percentage Rate
• Annual Person Rate
• Annual Progression Rate
• Annual Pound Rate

APR is used to

• Compare the annual borrowing rates from one lender to another
• Find out the fees of a company
• Find out the amount you borrow
• Find out the interest you pay back

APR gives

• The amount, interest and fees when borrowing from a lender
• The interest and fees when borrowing from a lender
• The fees when borrowing from a lender

Why is drawing money from an ATM using a credit card a bad idea?

• You pay interest on the cash instantly.
• You gain loyalty points for using it
• You get a good rate of interest.

What does interest free credit mean?

• Buy now and pay later
• Pay now and collect later

Variable APRs are better than fixed

• false
• true

Using pay day loan providers is good because you get your money instantly and only pay a low amount of APR

• false
• true

Why do people borrow money?

• To pay for large items or events that they haven't got time to save up for.
• To pay their electricity bills
• To buy food