Credit and Debit

Front

Each of the following financial products will help you build a credit history Except .... Secured credit card, Auto Loan, Credit Card

Back

Debit Card

Front

If a cardholder (Credit Card) pays the bill in full (523.20) by the due date (no carryover balance). Minimum payment $35. How much interest will be paid to the credit card company?

Back

No Interest

Front

Which of the following statements comparing credit and debit cards is TRUE? 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 and or Master Card. 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.

Back

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.

Front

What financial product am I? I am a type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account. Due to this deposit requirement, I am often a good choice for young people looking to establish a credit history.

Back

Secured Credit Card

Front

Which of these statements best explains why it's often good to pay more than the monthly amount due on an amortized loan? Options: 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 the loan. Amortized loans typically

Back

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

Front

When loans are amortized, monthly payments are ____, while the interest portion of the monthly payment ____ and the principal portion of the monthly payment ____ over time.

Back

Constant, Decreases, Increases

Front

The shorter your term length, the ____ your monthly payments, and the ____ the total interest you will pay.

Back

Higher, Lower

Front

Which of these credit payback strategies would lead to the HIGHEST interest charges?
- Paying off your credit card bill in full every month
- Paying 20% of your credit card balance every month on time
- Making the minimum payment (3% of your balance) every month with an occasional late payment
- Making the minimum payment (3% of your balance) every month on time

Back

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

Front

What is the down payment needed for a home costing $350,000 if the biggest mortgage you can afford is $200,000?

Back

$150,000

Front

What is an advantage of using a credit card?

Back

If you pay off your balances every month in full, it's like getting a short term loan interest free.