Ch. 5 - Credit Review - Part 1

Your credit score can range from?

• 300-850

• 275-800

• 300-800

• 250-750

What is a variable interest rate?

• The interest rate on your loan does not change over the life of your loan.

• Annual Interest Rate

• Changes with the index interest rate.

• What the lender charges for using credit, usually a percentage.

An example of Open-End/Revolving Credit is what? (2 correct answers)

• A Personal Loan

• A Cash Advance

• HELOC

• Credit Cards

What is an example of Closed-End Credit (2 correct answers)

• Mortgage

• Auto Loan

• Credit Card

• Cash Advance

What is the Schumer Box?

• Monthly Statements for your credit card

• HELOC on home loans

• A business loan

• Helps compare credit card fees and rates

This loan can charge you up to 400% interest.

• Secured Loans

• Unsecured Loans

• Personal Loans

• Payday Loans

What category impacts your credit score?

• Job History

• Monthly Loan Payment Amount

• Lower Interest Rates

• Credit Card Utilzaion

What is a secured loan?

• Lower interest rates, uses collateral to secure its money, auto loan or home loan.

• Higher interest rates, does not require collateral, student loan or personal loan.

• How often the interest is added to the loan principal each year.

What is an unsecured loan?

• Lower Interest Rates, uses collateral to secure its money, auto loan or home loan.

• Higher Interest Rates, does not require collateral, student loan or personal loan.

• How often the interest is added to the loan principal each year.

What is compound frequency?

• Lower Interest Rates, uses collateral to secure its money, auto loan or home loan.

• Higher Interest Rates, does not require collateral, student loan or personal loan.

• How often the interest is added to the loan principal each year.