Worksheetscareer prep test
Total questions: 44
Worksheet time: 28mins
what is the maximum amount of money you should owe each month for loan payments according to the 20-10 rule?
10% of your monthly income
20% of your monthly income
with the use of this money can be take directly from your checking account
debit card
credit card
with the use of this a person can purchase and make a future payment
credit card
debit card
the maximum account you can use on a credit card
revolving credit
credit
debt
installment credit
buying something now and paying for it later
credit
debit
a period of time before the interest starts accumulating
grace period
free period
charged to you to borrow money
interest
debit
credit
a reference to how you have borrowed and paid off loans in the past
credit report
debit
interest
something of value a lender can take if you dont pay your loan
collateral
capital
credit
character
besides you who can see your credit report?
everybody
the potential lender
the total amount you owe others
debt
debit
credit
who is responsible for reporting identity fraud?
you
the banker
to reduce your chances of being a victim of identity fraud you should. (the 3 d's)
(a)
final payment date of a loan
maturity date
loan date
cash loan
who can use the credit card but is not legally liable for the charge?
authorized user
joint account holder
the name for the amount you borrow on a loan..
principal
debt
debit
figures out an average payment for each period including principal and interest based on the duration of the loan
amortization
account holder
calculator
a person who shares your account and is legally responsible for the debt
joint account holder
authorized user
the five C's of credit
(a)
having a good record of paying back loans
character
capacity
collateral
capital
having a job to earn money to pay off loans
capacity
character
collateral
conditons
something of worth that can replace the debt
collateral
conditons
capital
capacity
situtations that may make a difference in getting a loan
conditions
capital
capacity
collateral
money needed to borrow money
capital
conditions
collateral
character
a person who agrees to pay off the loan in case you dont
cosigner
conditions
fixed rate
colegal
rate that stays the same for the life of the loan
fixed rate
adjustable rate
rate that changes at various times
adjustable rate
fixed rate
money that you pay upfront toward the purchase to reduce the loan amount
down payment
front payment
debit
a yearly fee for having an open account
annual fee
daily fee
monthly fee
your electric bill or phone bill is an example of what type of credit?
(a)
paying off a loan with a set number of equal payments by a date is what type of credit?
(a)
You are expected to pay off this loan with interest all at once at a specified time is what type of credit?
(a)
You are able to continue the use of the type of credit up to a limit
credit limit
limit
debt
A charge for going over the allowed charge amount
balance billing
charges
billing
what is the best credit score?
(a)
Identification documents are taken or online personal files are hacked without your permission
identity theft
identity fraud
Personal information used to make purchases, withdraw cash, or set up new accounts without your approval
identity fraud
identity theft
Your total amount borrowed each year should be less than what percent of your annual net income?
10%
20%
what loan doesn't require a credit history?
(a)
This person is considered a risk for a lending institution
subprime borrower
borrower
How long do late/missed payments stay on a credit report?
(a)
You could possibly have to pay this amount for unauthorized purchase
(a)
A desirable APR for a loan would be lower or higher?
(a)
What is the simple interest formula?
(a)
