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.