Ramsey Chapter 4 Review

What does a credit score measure?

• How much money you have

• How well you pay off debt

• How well you budget your money

• When you can retire

Who pays the highest interest rates on credit cards?

• Rich people

• Old people

• Young people

• Poor people

Which is the 4th Foundation?

• Build Wealth and Give

• Pay Cash for College

• Get Out and Stay Out of Debt

• Pay Cash for a Car

A home equity line of credit (HELOC) can be used for:

• Home repairs or renovations

• Anything you want!

• Buying a new car

• Paying off credit card debt

What is your greatest tool for building wealth?

• Your credit score

• Credit cards

• The stock market

• Your Income

Which is the 3rd Foundation?

• Build Wealth and Give

• Pay Cash for College

• Get Out and Stay Out of Debt

• Pay Cash for a Car

Which type of loan requires collateral?

• Unsecured loan

• Secured loan

• Revolving credit

• Installment credit

Which is NOT part of the FICO score (credit scores)?

• Debt payment history

• Types of debt

• Your income level

• Amounts owed on debt

Which is the 1st Foundation

• Build Wealth and Give

• Pay Cash for College

• $500 Emergency Fund

• Pay Cash for a Car

Which of the following can you NOT do with a debit card?

• Rent a car

• Go into debt

• Book a hotel room

• Reserve airline tickets