Using Credit - Review

Front

Which one is considered a danger of using a credit card: no cash needed, leads to overspending, convenient, earns rewards?

Back

leads to overspending

Front

Example of a secured loan

Back

auto loan

Front

What is APR?

Back

Annual Percentage Rate

Front

Out of the following, which is NOT one of the 5 C’s of credit? character, capacity, collateral

Back

convenience

Front

Chapter 7 bankruptcy vs. Chapter 13 bankruptcy

Back

Chapter 7 liquidates assets to pay debts, while Chapter 13 sets up a repayment plan.

Front

A legally binding contract between two or more parties requires:

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Offer, acceptance, and consideration

Front

what is collateral?

Back

Property or assets pledged to secure a loan

Front

To build a good credit history, you should: open as much credit as possible quickly, use the maximum credit allowed on all your credit cards, pay on time and as much of your balance as possible, all of these

Back

pay on time and as much of your balance as possible

Front

Over time, people who pay off their credit card balance in full every month will pay less in interest on their credit card.

Back

true

Front

Outstanding amount of money that is owed on a credit card bill

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Balance