Credit, Insurance, Home, and Estate Essentials

What is the initial lump sum payment made when purchasing a home called?

• Mortgage

• Down payment

• Escrow

• Appraisal

Which of the following is NOT a type of credit card?

• Rewards card

• Secured card

• Charge card

• Debit card

What is the main difference between renting a home and buying a home?

• Renting requires a mortgage

• Buying gives you ownership equity

• Renting allows you to build credit

• Buying is always more expensive

What legal document specifies how a person's estate should be managed after their death?

• Mortgage

• Trust

• Will

• Deed

What is the term for the fee charged by a credit card company for the convenience of withdrawing cash?

• Cash advance fee

• Balance transfer fee

• Over-the-limit fee

• Annual fee

Interest rate charged for balances on a credit card.

• APR

• Principal

• Collateral

• Fees

Benefits of credit cards include:

• safe and convenient, bonuses are offered
• allows you to build a positive credit report
• needed for reservations and online shopping
• all of these

The maximum amount you may borrow on a credit card is known as:

• creditworthiness
• credit report
• credit limit
• variable rate of credit

There’s no penalty if I pay my credit card balance after the due date.

• True

• False

Having a high credit score will allow lenders to give you lower interest rates.

• True
• False