Customer deposits

Government funding

Stock holders

Services

$10,000

 $250,000

$50,000

$500,000

When given a range of A.P.R.s like this, you can assume most cardholders pay the lowest rate listed

One of the primary factors determining your card's A.P.R. is your credit score

With credit card A.P.R.s, cardholders like higher A.P.R.s because they earn more

The A.P.R. on credit cards is usually fixed so they won't be adjusted as long as you are a cardholder

Paying 20% of your credit card balance every month on time

Paying off your credit card bill in full every month

Making the minimum payment (3% of your credit card balance) every month on time

Making the minimum payment (3% of your credit card balance) every month with an occasional late payment

No change since credit card A.P.Rs don't change as long as your account is open

Increase in A.P.R by 1%

Decrease in A.P.R. by 1%

Increase in A.P.R. by 22.74%

Far more businesses accept credit cards than debit cards

Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

Credit card companies provide you with a monthly statement, while debit cards do not

With debit cards, you're spending your own money at point of sale, while with credit cards, you're promising to pay back the money eventually

Standard credit card

Secured credit card

Overdraft credit card

Rewards credit card

If you make the minimum payment on your card by the due date, the credit card company will not charge you interest.

If you pay your balance in full after the due date, the credit card company will not charge you interest.

If you pay your balance in full after the due date, you will be charged interest.

If you pay your balance in full by the due date, you will be charged interest.

Does the cashback program apply to all purchases or only specific types of purchases like gas and groceries?

Can I get a debit card along with a new credit card?

Who does OrangeCo use as their spokesperson in the commercial?

Do I still get the cash back even when I return my purchases to the store?

Every time you pay extra, the lender will reduce the interest rate they're charging by a small amount.

The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly.

The extra payment will be applied to the interest you owe, which will reduce the overall cost of your loan.

Amortized loans typically have much higher interest rates than credit cards, so they're the best place to put your extra cash.

you apply for them in-person, at your own bank branch or at a competing branch (if they offer better rates).

you apply for them in-person or online, but whether you are given the loan depends on your personal credit score.

they are lent based on your personal credit history rather than secured by an asset like a house or car.

they are given to someone based on their personal familiarity with their banker.

Home equity loans or lines of credit are illegal in most states

Home equity loans or lines of credit are only available to people who have paid for their home in full

Home equity loans or lines of credit are not available to renters

Home equity loans or lines of credit are only useful for funding home improvement projects

Amy chose a shorter term for her mortgage, so her monthly payments are higher

Chuck has a lower credit score, so his interest payments are also lower

Amy made a larger down payment, so her monthly payments are also larger

Chuck's interest rate is higher, so his monthly payment due is also lower

The Federal government offers numerous loan repayment plans, including standard, income-based, and graduated payments.

Federal student loans do not begin accumulating interest until after you graduate and are employed at least part time.

Federal student loans are typically more expensive than private student loans.

You must take the SAT or ACT to qualify for Federal student loans.

$0 down payment, 6% interest, 60 months

$0 down payment, 6% interest, 84 months

$3000 down payment, 6% interest, 60 months

$3000 down payment, 0% interest, 36 months

You owe the same payment every month

You can buy additional items as you need them without getting approval for each purchase

They do not charge interest

One common example is a car auto loan

Payment history and type of account

Amounts owed and length of credit history

Payment history and amounts owed

Length of credit history and new credit inquiries

Consumers with high scores can borrow and those with low scores cannot

Consumers with low scores get lower interest rates on loans than those with high scores

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

It generally has no impact on your financial situation

Not using more than 30% of the credit limit on your card and paying it off in full every month by the due date

Spend up to the full credit limit on your card and pay off the bill in full every month on time

Make the minimum payment required on your credit card every month by the due date

Put the credit card in a drawer and don't ever use it

Once I make the payment, it will disappear

One year

Seven years

Ten years

Companies named Equifax, Experian and TransUnion

Federal government

Consumer Financial Protection Board (CFPB)

Lenders

His savings account has more than $3000 in it

He paid off a car loan after making every payment for 4 years

When he stopped paying his credit card for 3 months 9 years ago

The credit scores of his family, including his parents and his wife if he is married

Paying your bills on-time

Paying down balances on your credit card accounts

Decreasing your utilization of credit

Applying for multiple credit cards in a short period of time (e.g., a week)

The DEBT SNOWBALL method is to pay the highest interest loans off first while making minimum payments on the others. 

The DEBT SNOWBALL method is to pay off the smallest loans first, which can be motivating because you will have fewer sources of debt. 

The HIGH RATE method is to only make payments on the loans with the highest interest rates.

The HIGH RATE method is to pay off the biggest loans first, because they will have the highest interest payments overall. 

Lender can file bankruptcy on your behalf 

You are turned down for new loans

Lose your job

Collection agencies begin visiting your friends and relatives to collect your debt

Joanie says, “Call the auto lender and see if you can negotiate a lower monthly payment or some other deal.”

Debbie says, “Stop making the credit card payment for a few months until you’re caught up on the auto loan.”

Angie says, “Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family.”

Betty says, “Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential.”

$72,000

$-14,000

$136,000

$-78,000