WorksheetsChapter 5 Review
Total questions: 21
Worksheet time: 38mins
What can be used repeatedly for purchases that will be paid back monthly?
Payday Loans
Personal Loans
Open-Ended Credit
Close-End Credit
How can you avoid paying interest on a credit card balance?
(a)
What is the interest rate + other loan costs + fees?
VRP
APR
AMF
VPR
What are the advantages of using a credit card?
What is the easiest way to establish credit?
(a)
What is true about a variable interest rate mortgage?
The interest rate varies during the length of the loan
Also called an ARM (Adjustable Rate Mortgage)
None of the above
A&B
How does loan amortization work?
Your monthly loan payments should not be over what % of your monthly GROSS income? (Including your Mortgage)
18%
26%
36%
38%
Your monthly loan payments should not be over what % of your monthly NET Income? (Not including your Mortgage)
20%
15%
16%
36%
What is the difference between a Secured and an Unsecured loan?
List some examples of an Unsecured loan.
Which has the highest monthly payment?
Open-ended credit
Amortized loan
Interest Only Loan
Deferred Loan
List the borrower's responsibilities.
Describe a Credit Builder Loan.
What is a Schumer Box and what does it do?
How long do late payments stay on your credit report?
(a)
What is the difference between a "soft" and "hard" inquiry?
What are FICO's 5 credit score factors?
What are the ways to build credit?
What is the highest credit score you can have?
700
750
800
850
If you have to go into bankruptcy, which type of bankruptcy allows you to keep most of your property and renegotiate your debt payments according to a court-approved repayment plan?
(a)
