Credit Review

Which of the following could be a SECURED loan?

• Auto loan

• Student loan

• Hotel credit card

• 401(k)

If the collateral for your secured loan can be taken away, why get a secured loan at all?

• They usually have a lower interest rate.

• Banks don't charge interest for the first 12 months

What may NOT impact the interest rate on your loans?

• credit score

• loan amount

• level of education

A cosigner's credit history can be affected by the loan they are cosigned on.

• True

• False

What information on a Schumer Box should you focus on when choosing a credit card?

• APR

• Fees

• Grace Period

• Term of credit card

How do you avoid paying interest on your credit card?

• Always pay at least half of the balance

• Always make the full payment on time

• Pay interest first, then principal

When you make only the minimum payment each month...

• it is the fastest way to pay off your debt

• your credit line is restored to its maximum amount

• You are charged interest on the remaining balance

Payday loans...

• charge a one-time fee

• are usually successfully paid back on time

• are revolving debt

Which of the following is true about an auto loan and a lease?

• You make monthly payments on both

• Only a loan requires an upfront payment

How do federal student loans differ from private student loans?

• Private loans repayment start when you're in school

• Fed loans have higher interest rates

• Federal loans have less flexibility