Fall Semester Review

_______ loans have a very high APR (400%) and may create a cycle of debt

• Finance company

• Payday

• Banks and credit union

• Retail store

The lend customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck

• Payday lenders

• Banks

• Principle

• Insurance Agent

If you do not pay back a ________ loan, then the company can take your car

• Title Company

• Payday

• Bank

• Credit Union

Revolving credit is....

• a type of credit that can be used repeatedly, up to a certain limit as long as the account is open and payments are made on time

• a spinning door with money in it

• a type of credit that can be used only once, up to a certain limit, and must be closed immediately after all payments are due

• a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly

A _______ is an example of revolving credit

• Credit card

• Installment loan

• Student loan

• Personal loan

_________ is/are repaid in set monthly payments

• Installment loans

• IOUs

• Credit cards

• Bankruptcy

________ offer a variety of loans and have lower interest rates than many other sources of credit. They also have checking and savings accounts

• Retail stores

• Banks and credit unions

• Finance companies

• Payday loan stores

Which of the following is NOT one of the C's of credit?

• Character

• Capacity

• Collateral

• Credit

The _______ your credit score, the lower your interest rate

• higher

• lower

A number assigned to a person that indicates to lenders their capacity to repay a loan

• Credit score

• Lender

• Loan terms

• Credit history