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WorksheetsCredit, debit cards and credit score
Total questions: 12
Worksheet time: 7mins
What are the differences between a Credit Card and a Debit card?
Debit card is using your own money, while Credit cards are borrowing against the bank.
Credit cards build credit history. Debit cards do not
Debit cards incur low fees for overdrafting. Credit cards place a hard limit on your spending
Credit cards allow the user to incur higher debt, debits do not.
According to Dave Ramsey, which loan should we pay off first?
$5,500 with a 4.3% rate
$900 with a 5.7% rate
$1200 with a 1.1% rate
$10,000 with a 6% rate
You should use Credit for which of the following purchases.
Utility bills
Paying off a debt
Your daily coffee at Starbies
Hotel stays and rental cars
If Stanla takes out a loan for a car that has a principal amount of $3,000 and she has a 5% payment. If she pays $450 a month how many months will it take for her to pay off the loan? LOAN= Principal * interest/ number of payments
3 months
7 months
6 months
9 months
What is the formula for a credit score
Payment history 35%, debts owed 30%, credit history 15%, new credit lines 10%, types of debt 10%
Amount of debt, divided by yearly earnings multiplied by 12.
ten percent luck, twenty percent skill Fifteen percent concentrated power of will Five percent pleasure, fifty percent painAnd a hundred percent reason to remember the name
Student loans, medical loans, car loans and mortgage payment divided by twenty-four
What loan strategy did Dave Ramsey teach us to help us pay off our debts?
The fireball method
The snowball method
The airball method
The living in a van down by the river method
What is a savings account?
An account you make deposits into specifically kept for emergencies and investing
An account made for daily use and transferring funds
An account you form with the bank/credit union. Where the money can not be touched for 1-5 years, upon maturity you collect your amount plus interest owed.
A Low credit score is indicative of....
a person who will pay the bill in full every month
a person who will take the money and pay it back over the course of a month or two
A person who will spend the money on frivolous things and maybe pay it back
Someone who will not pay the loan back
What are the four categories of a credit score?
Horrid, Bad, Good and excellent
Worse, bad, ok and perfect
Perfect, excellent, fair and poor
What is shown in a bank statement?
Amount of money available to you currently
The purchase receipts of the last month
recurring bills attached to the account
Why are high credit scores important?
Lower interest rates
higher loan amounts
loan forgiveness
Mortgage refinancing
How confident are we feeling about the final project?
0-2
HELP ME Mr. W
3-5
Im confident but anxious
6-8
Just give me time to work on my super awesome letter!!!
9-10
Ive got this all lined up Mr. W I just need to sit down and do it.
