| Credit Terminology | Loan Costs and Fees | Net Worth | Types of Debt |
|---|---|---|---|
|
What is a fixed rate loan.
The type of loan that has an unchanging interest rate.
|
What is the cost of credit expressed as a yearly rate.
Annual Percentage Rate [APR].
|
What is depreciate.
This happens to the price of an automobile over time.
|
What is collateralized or secured debt.
An auto loan is an example of this type of debt
|
|
What is a student loan.
One loan that offers a deferral period.
|
What is the cost of the loan is less.
Assuming all other things are equal,
the cost of the loan ________ when the borrower pays a larger down payment? |
What is a borrower with a lower credit score.
When borrowing money to purchase a car, a person
would pay more in interest if they had a |
What is unsecured or non-collateralized debt.
Secured or unsecured debt.
A credit card is an example of this type. |
|
What is a lien.
The legal claim of one person to the property of another person to secure the payment of a debt or the satisfaction of an obligation.
|
What is less
Assuming the interest rate is the same,
The total interest paid for a simple interest loan [like most auto loans] is < more or less> than the total interest for a compound interest loan |
What is Person B
This person has the higher Net Worth:
Person A: Bought a new $10,000 car and financed 100% of value. Person B: Bought a $1,000 car and paid cash. Click screen for answer. |
What are fixed interest rate and variable interest rate in that order.
A collateralized consumer loan has a ______interest rate
AND an unsecured loan usually has a _______interest rate |
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