JH Unit 4: Credit Comprehension

Term
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Friends and family will typically work with you to set up a repayment plan you can afford
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Terms in this set (12)
Friends and family will typically work with you to set up a repayment plan you can afford
What is one benefit of borrowing money from a friend or family member instead of from the bank?
It might cause problems in their friendship if Justin doesn't repay her on time or if he then asks for even more money
Justin really wants to attend the 8th-grade graduation ceremony, dance, and field day, but all the tickets combined cost $75, and he doesn't have that much. Justin has no job, gets no allowance, and his birthday was just last month, so he's not expecting any gifts soon. What's a potential downside of asking his friend Kylie for a loan?
Credit cards allow you to borrow money to pay for things, while debit cards take money straight from your own checking account
What is the key difference between a credit card and a debit card?
Are you trying to make a bunch of small purchases over time or one large purchase?
Craig isn't sure if he should open up a credit card account or get a bank loan. What question is MOST useful in helping him decide which financial product he should get?
Credit will charge him interest every month until he repays his full balance
Kervin really wants to buy a new bike because his old one is too small now. He's trying to decide if he should use his debit card or credit card. What's one reason he should be careful about using credit?
A high interest rate means you'll pay MORE money total
Which statement about credit card interest rates is TRUE?
Middle-aged people
Which age group tends to have the most credit card debt?
Pay your full balance every month
What is the best way to avoid going into large debt on your credit card?
Bank account balance
Each of the following factors impacts your credit score EXCEPT...
750
Katherine has been using her credit card very responsibly in hopes of raising her credit score. Which score would indicate that Katherine now has a prime score?
A high credit score will make it easier for him to get loans or credit cards with better interest ratesMiguel's parents keep telling him he should worry about his credit score. He says, "Why bother?" Why should Miguel care?The total amount you borrowedWhen discussing a loan, such as a college loan or auto loan, what does the word "principal" mean?