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WorksheetsTypes of credit review
Total questions: 36
Worksheet time: 20mins
What is the principal of the loan?
the initial amount of the loan
the cost of borrowing the loan
the period of time you take out the loan for
a manager in charge of the loan
What is a loan term?
The amount of time a revolving line of credit can be open
The payment of income to a savings account in regular payments over a set period of time.
The period in which the loan is to be repaid, each payment broken down into individual installments
Specifically related to the black market for human organs, and typically meant as the length of time one's kidney will be used for other purposes
If the collateral for your secured loan can be taken away, why get a secured loan at all?
Because they usually have a higher interest rate
Because they usually have a lower interest rate
Banks give you an extra 90 days to make a missed payment
Banks typically don't charge interest for the first 12 months
What is the ability to acquire money, goods or services from others without immediate payment; an agreement to repay the purchase price and whatever interest is incurred?
Annual Fees
Credit
Intermediate-term Loans
FICO Scores
What is an interest rate?
it is your level of interest about a certain topic expressed as a percentage of your total interest
The amount in terms of dollars that you have to pay back on a purchase
it is the rate at which your interest in something expires. The higher the number, the quicker your interest expires
The amount in terms of a rate or percentage that you have to pay back on an amount borrowed
The bank will take possession of your car if you .... your car loan.
pay off
default on
endorse
compute
Loans for buying cars are called ....
commercial loans
personal loans
auto loans
loan application
If you have an amortized loan, your monthly payment will _______________
never be the same
sometimes be the same
always be the same
A table with each monthly payment on a loan. It shows how much of the monthly payment goes toward interest and principal.
Amortization Schedule
Schumer Box
Authorization Table
Check Register
If you have an amortized loan, your monthly payment will _______________
never be the same
sometimes be the same
always be the same
What is an annual fee?
the interest rate you pay on any unpaid balances
the interest rate you pay on any purchases
the yearly fee you pay for being a cardholder
the monthly fee you pay for being a cardholder
What is a minimum payment?
the minimum amount of money you can pay back - you will have to pay interest on the unpaid balance
the minimum amount of money you can pay back - you will NOT have to pay interest
the maximum amount of money that you can borrow with a card
the amount that will be shown on your bill
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
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)
The larger your down payment amount, the (larger/smaller) the loan amount, and (larger/smaller) your monthly car payments.
Larger/larger
Larger/smaller
Smaller/larger
Smaller/smaller
When borrowing money for an auto loan, it is better to have a (higher/lower) interest rate. The higher your credit score is, the (higher/lower) your APR, or interest rate.
Higher/higher
Higher/lower
Lower/lower
Lower/higher
The shorter your term length, the (higher/lower) your monthly payments, and the (higher/lower) the total interest you will pay.
Higher/higher
Higher/lower
Lower/lower
Lower/higher
get a new student loan that pays off all the existing student loans
Deferment
Forbearance
Consolidate
Mortgages with shorter terms have higher monthly payments. Why would anyone want a short-term mortgages?
You pay less in principal in total
You pay less interest in total
You pay less in property taxes in total
You pay less in insurance and processing fees
What is one of the advantages to making a larger down payment?
You will need a smaller loan
You will need a bigger loan
You will need a higher interest rate
You will need a lower intererest rate
