Personal Finance Unit 3.1 Consumer Credit
If you have $1,000.00 on a credit card and the interest rate is 23.7% per year, how much interest will you pay for one year?
$237.00
On average, compared to a person with good credit, a person with poor credit will pay ________ for insurance?
20% to 50% more
How many monthly payments are there in a 30-year loan?
360
How long does it take to rebuild your credit history?
7 years
If you miss two payments on a credit card, what is generally the penalty?
A higher interest rate and a late payment fee
If you miss one payment on a credit cared, what is generally the penalty?
A late payment fee
Secured debt means a lender gives you money in exchange for what?
Collateral
When as asset, such as a car, decreases in value over time what is it called?
Depreciation
Which type of debt is the least attractive for a consumer?
Unsecured debt
A FICO score represents all of the following EXCEPT:
the amount of money in your retirement account.