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Worksheets12ACredit, Cars and Loans
Total questions: 61
Worksheet time: 28mins
APR stands for
annual profit rate
annual percentage rate
annual participation rate
annuity profit range
What is a Grace Period?
A period where you don't have to pay interest
A period where if you pay, then you don't have to pay interest
A period where the Bank will give you extra time to pay off what you owe
A period where interest is accumulating but you don't have to pay it
The bank will take possession of your car if you .... your car loan.
pay off
default on
endorse
compute
The amount of money that the lender lends to the borrower is called ....
principal
tenure
default
collateral
The three elements of loan in credit rating that can be offered to the customer by the credit dept. are ....
amount
type
term
collateral
Loans for buying cars are called ....
commercial loans
personal loans
auto loans
loan application
The bank adds the interest to the .... to calculate the monthly payment of your loan.
principal
tenure
charge account
credit file
A person has a lot of .... if he owes money to a lot of people.
debts
credits
loans
principals
Why do lenders charge interest?
To make money
To comply with federal law
To help borrowers
To discourage borrowing
What is a financial asset?
Collateral
A principal
A credit score
A loan
What is a closed-end loan?
A loan without a specific repayment date
A loan with a variable interest rate
A loan for a fixed amount with regular payments
A loan that requires collateral
What is an unsecured loan?
A loan without a fixed term
A loan without interest
A loan without collateral
A loan without fees
What is the principal of a loan?
The interest rate
The total cost of borrowing
The monthly payment
The amount of money borrowed
What is a secured loan?
A loan without collateral
A loan without interest
A loan without fees
A loan backed by collateral
What is a student loan?
A loan for purchasing a car
A loan for purchasing a house
A loan for college expenses
A loan for personal expenses
What is a mortgage loan?
A loan for purchasing a car
A loan for college expenses
A loan for personal expenses
A loan for purchasing a house
What is the interest of a loan?
The amount of money borrowed
The total cost of borrowing
The monthly payment
The cost of borrowing money
Your credit score can range from?
300-850
275-800
300-800
250-750
What is the Schumer Box?
Monthly Statements for your credit card
HELOC on home loans
A business loan
Helps compare credit card fees and rates
This loan can charge you up to 400% interest.
Secured Loans
Unsecured Loans
Personal Loans
Payday Loans
What is a secured loan?
Lower interest rates, uses collateral to secure its money, auto loan or home loan.
Higher interest rates, does not require collateral, student loan or personal loan.
How often the interest is added to the loan principal each year.
What are some advantages of using a credit card?
If you pay off your balance every month in full, it is similar to a short-term interest-free loan.
If you need to carry a balance, the interest rates are generally quite low (less than 7%)
Since it is tied directly to your checking account, it prevents you from spending more money.
Using it will always negatively affect your credit score.
The original amount borrowed.
Principal
Balance
Debt
Income
An amount owed to a lender.
Debt
Credit
Lien
$500
Why should you worry about having "good credit?"
better credit terms
something you can brag about
it's the adult thing to do
bad credit is very expensive to live with
What is important in establishing good credit?
Making payments on time
Being late on payments
Spending 100% of your credit limit
Missing a payment
What is debt?
Another word for death
Something, typically money, that is owed or due
A loan on which you do not have to pay interest
That which is incurred during childhood and consummated in college
What is a credit report?
A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness
A detailed report of a bank's credit history prepared by a credit expert and used by consumers in determining a bank's creditworthiness
A report which shows which credit cards are better than others
A report invented by Allan Greenspan and credited to Al Gore
What type of credit score is this 570?
Average
Great
Poor
Excellent
My credit history does not affect my chances for renting my first apartment.
True
False
T/F: A negative credit event (bankruptcy) can have a WORSE impact on a higher credit score.
True
False
a payment card that you pre-load with your own money
prepaid card
debit card
credit card
loan
If you must borrow money, having a larger down payment will
increase the amount of interest you pay
decrease the amount of interest you pay
have no effect
ensure that your money is kept safe down in a hole
If you must borrow money, taking a long time to pay it off will
increase the amount of interest you pay
decrease the amount of interest you pay
have no effect
ensure that your kids will pay your debt for you
If you must borrow money, paying off the loan over a shorter amount of time will
increase the amount of interest you pay
decrease the amount of interest you pay
have no effect
ensure that friends will help you pay your debt tomorrow
If you must borrow money, making a smaller down payment or no down payment will
increase the amount of interest you pay
decrease the amount of interest you pay
have no effect
ensure that most of your money is above ground
the reduction of a loan balance through payments made over a period of time
Universal Default
Bankruptcy
Payday loan
Amortization
Fee charged, just to carry a credit card per year
Annual Credit Card Fee
Over the Limit Fee
Late Payment Fee
Returned Payment Fee
A fee charged when using your credit card to obtain cash
Annual Credit Card Fee
Cash Advance Fee
Late Payment Fee
Returned Payment Fee
A record of your behavior related to borrowing and repaying loans.
Credit Score
Credit Report
Credit History
Ammortization
Name some car advertisement
Bonus Cash
Zero Down
0% financing
Free Car
A cosigner is liable for complete repayment of the loan if the primary borrower cannot pay.
True
False
What is the main difference between an auto lease and an auto loan?
On both auto loan and auto lease the borrower is purchasing a car
On both auto loan and auto lease the borrower will have to return the car
On an auto loan the borrower is purchasing the vehicle while on a lease the borrower returns the car at the end of the terms
On an auto loan the borrower will have to return it while on a lease the borrower is purchasing the vehicle
Both auto lease and auto loan are secure accounts.
True
False
Attempted recovery of a past-due credit obligation or debt by a collection department or agency
Net Worth
Credit Bureau
Collections
Debt Snowball Method
All of the following appear on your credit report EXCEPT
Your checking account balance
Student loan payment history
Number of active credit accounts
Balance owed on car loan
Which of the following is true about a college education?
College is the only way to get a stable, high paying job
College grads have higher lifetime earnings on average than HS grads
College grads have a higher rate of unemployment
More education is related to lower unemployment
If you want to build work experience directly after high school, you could...
Take an online college course
Attend a four-year college
Find an apprenticeship
Volunteer once a year
What is the difference between soft skills and hard skills?
Hard skills are easily measurable; soft skills are "people skills"
Hard skills are more advanced than soft skills
In job postings, hard skills are "required" and soft skills are "preferred"
Soft skills are less important to employers because they're not technical
A cosigner on a loan can help by:
Reducing monthly payments
False
Boosting approval odds
Offering collateral for the loan
