Credit and Borrowing Review

What is debt?

• Money that is spent

• Money that is owed because of borrowing

• Money that you lend to others

Credit means you ________now and ________ it back later.

• Borrow, Pay

• Pay, Borrow

• Pay, Pay

Credit Card is a type of what?

• bond

• Loan

• savings

Types of credit include: Credit card, Installments, Mortgage and

• debit card

• rewards card

• Student Loans

What fee is associated with a car loan

• Annual Percentage Rate (APR)

• Introductory

• Emotional

What is the best way to manage credit and debt?

• use rewards

• spend now worry later

• Make big purchases

• set goals and budget

The maximum amount of time over which an individual agrees to repay an auto loan. Typically ranges from 36 to 84 months.

• Loan

• Loan terms

• Down payment

• Annual percentage rate (APR)

The original amount of money that is borrowed. The amount decreases when you make a payment.

• Annual percentage rate (APR)

• Loan amount or principal

• Down payment

• Loan terms

The expected decline in value over time of an item.

• Lender

• Loan amount or principal

• Depreciation

• Credit history

A fixed amount of money, percentage of the selling price or item of value that is traded in to reduce the cost of purchasing a vehicle.

• Credit history

• Loan terms

• Down payment

• Annual percentage rate (APR)