Credit Unit Review

Front

If the collateral for your secured loan can be taken away, why get a secured loan at all?

Back

Because they usually have a lower interest rate

Front

What may NOT impact the interest rate on your loans? Your relationship with the financial institution, Your credit score, The loan amount, Your level of education

Back

Your level of education

Front

How do you avoid paying interest on your credit card (or any other loan for that matter)?

Back

Always make the full payment on time.

Front

Which is TRUE when you make only the minimum payment each month? Options: You are charged interest on the remaining balance, Your credit line is restored to its maximum amount, Credit card companies have permission to sell your information, It is the fastest way to pay off your debt

Back

You are charged interest on the remaining balance

Front

Which is TRUE about Payday loans? Options: You can pay them back in installments, You are charged a 1-time fee for the loan, Most people successfully pay these loans back, You need a credit card account to get one

Back

You are charged a 1-time fee for the loan

Front

A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.

Back

higher, less

Front

How do subsidized federal student loans differ from unsubsidized federal student loans?

Back

Unsubsidized loans start accumulating interest right away, while subsidized do not.

Front

How are credit cards and debit cards different?

Back

A credit card can offer perks such as purchase protection.

Front

Which of the following does NOT contribute to your credit score?
Your payment history,
Your debt-to-credit ratio,
Length of credit history,
Which banks issued your credit cards

Back

Which banks issued your credit cards

Front

How are a credit score and a credit report related?

Back

A credit score is determined by the factors in your report.