FINANCIAL LITERACY- Types of Credit & Loans

What is a subsidized loan?

• Loans for students that does not have interests added to the loan while you are in school

• Loans for students that starts charging interests the month after you start borrowing it.

A cosigner on a loan can help by:

• Reducing monthly payments

• Getting the loan approved

• Reduce length of term on loan

What are 3 things that associated with a loan?

• Interest rate, loan length, and monthly payment

• Education history, credit score, and monthly payment

• Education history, credit score, and yearly payment

Which one below does not impact a loan you borrow?

• Current Debts

• Employment and Employment History

• Credit Score

• Education

What can happen if you have bad credit or a low credit score?

• Government will start taking money out of your bank account

• Nothing

• Can not get approved for loans or the interest rates will be very high on the loan you get

What is an unsubsidized loan?

• Loans for students that does not have interests added to the loan while you are in school

• Loans for students that starts charging interests the month after you start borrowing it.

What institution do all credit cards come from?

• Educational Institutions/Schools

• The Federal Government

• DMV

• Banks

Which one of the following, below, can happen if you do not pay your minimum payment, on time, for your credit card?

• Increase interest rates and late fees added

• Higher credit score and extension

• Tax and salary garnishments

How long does a bankruptcy, which means you will have very bad credit during this time, typically remain on a credit report?

• 6 months

• 7-10 years

• Forever

When applying for a loan, why might a lender be interested in your credit score?

• To set the loan's interest rate and terms based on risk

• To know how much money you have in your bank account

• To sell your personal information to third parties