MDFL Semester Exam Review Units 6 & 7

Front

What is the range of FICO Scores?

Back

FICO Scores range from 300 to 850.

Front

What is a Schumer Box?

Back

A Schumer Box is a table that provides important information about the terms and costs of a credit card.

Front

Does Carson have to pay an annual fee for his credit card according to the Schumer Box?

Back

No, Carson does not have to pay an annual fee.

Front

Which type of lender is likely to offer the most favorable terms for a subprime credit score auto loan?

Back

A credit union is likely to offer the most favorable terms.

Front

What happens to a car's value the moment it is driven off the lot?

Back

Cars lose 10% of their value the moment you drive it off the lot.

Front

What is depreciation in the context of cars?

Back

Depreciation is the reduction in the value of a car over time due to factors like age, mileage, and condition.

Front

What is the average daily balance in credit card billing?

Back

The average daily balance is the sum of the daily balances during the billing cycle divided by the number of days in the cycle.

Front

What does APR stand for?

Back

APR stands for Annual Percentage Rate, which is the annual rate charged for borrowing or earned through an investment.

Front

If Regina pays her credit card balance in full each month, will she incur a finance charge?

Back

No, if she pays in full, she typically will not incur a finance charge.

Front

What is a subprime credit score?

Back

A subprime credit score is a credit score that is below the average range, indicating a higher risk for lenders.