Alice's study guide
Items bought on credit and paid for over long periods of time cost the same
False
The term is the initial amount of money borrowed in a loan
False
------------- is the entire amount of money you own to lenders
Debt
Items that you want, but are not necessary for your day-to-day spending are called
Discretionary expenditures
Money you pay up front toward the purchase to reduce the loan amount
Down payment
Which of the following is NOT an advantage of using credit?
Ease of spending money you do not have
When you are filling out a check, you have to put a signature. Once you have signed the check, this is known as -------- the checking
Endorsing
Name if the part your budget is necessary or discretionary expenditures
Food- necessary vacation- discretionary clothing- necessary transportation for work- necessary new style of clothing you do not really need- discretionally Entertainment- discretionally Apartment- necessary
The amount of time before interest starts accumulating on charged purchases
Grace period
------------- occurs when someone uses your personal information without permission
Identity theft
Unsecured loans offer all of the following expect?
If the loan is not paid, risk of losing collateral is high
An example of closed-ended credit is a an -------------
Installment loan
_____________ is the amount of money you pay to use someone else's money
Interest
The amount of time your obligated to make payments on a loan is the
Interest rate
Good debt is normally an -------------- with your money in yourself or your husband
Investment
Which of the following can impact your credit score?
Making a late car loan payment
Type of loan used specifically for purchasing a home is a ------------
Mortgage
Which of the following is NOT one of the national credit reporting agencies?
National Credit union administration
What is the first type of expense you should put on your budget?
Necessary Expenses
Items on your budget such as medical care, insurances, rent or mortgage payments, food and clothing are called
Necessary expenses
What you give to obtain something else is called ------------
Opportunity cost
The fee incurred when exceed your credit limit on your credit card is
Over limit fee
What is the best way to reduce a loan payment?
Paying the principal down
Credit is available most readily to
People with a good credit rating
The amount you pay to use credit depends on all of the following EXCEPT
Reason for using credit
Another name for open ended credit is ------------ credit
Revolving
A an ______________ is a loan used for tuition and other colleges expenses
Student Loans
Credit cards that allow consumers to use credit at many places can be obtain
banks, credit unions, and credit card issuers
A consumer should check out his or her credit rating periodically to
be sure the information on file is correct
------------ is the existing cash on hand such as saving accounts or checks
capital
With this type of loan the interest rate remain the same for the life of the time
fixed rate
You can damage a good credit rating by
ignoring bills you cannot pay until the creditors take collection action
As the percentage rate of interest on a credit transaction increases the final
increase
Which of the following is a type of closed-end-credit
installment loan
When we look at government and/or business's budgets, we typically see that they use an
Annual budget
When comparing credit terms, it is important to consider
Annual percentage rate of interest, grace period, method of computing the balance
Person who can use a credit card but not be legally liable for the balance
Authorized user
Is an official summary of financial transaction occurring within a given period for each bank account
Bank statement
Legal process to get out debt when you can no longer make all your pay
Bankruptcy
What is NOT one of the reasons we reconcile our records?
Banks make you submit balanced statements
How long should you keep each type of statement before you shred them or throw them away ?
Bills- 1 months Bank statements- 1 year Tax records- 6 years Receipts- 1 month
A---- show your anticipated income as well are your expenses
Budget
When is the part of your check book called where you put in each of the transactions you have made?
Check register
Bad debt is normally characterized as ----------------- or loses value or time
Consumed quickly
------------- is a report that details how a person has used credit
Credit Report
A three-digit number based on a person's credit report is their
Credit card
When your bank sends you a statement at the end of each month, you want to make sure to check each transaction on your records to the records on the statement
This is called Reconcile
Before using credit you should ask yourself is using credit worth it for this place
True
When you co-sign a loan, you agree to repay the debt if the applicant fails
True
You will not owe any interest if you pay your entire credit card bill by the due date.
True
You will pay more interest on cash advances on your credit card than on card
True
Secured loans offer all of the following expect?
Usually paid in 10-15 years
