Page 7 Flashcards
The amount of interest charged on a debt but not yet collected is called.
accrued interest
One of the main reasons we build wealth is so that we can.
give to those in need
Which principle says that a certain amount of money today is worth more than the same amount in the future?
The time value of money
Something that credit card commercials don’t show you is …
People making payments for months or years on those credit card purchases
When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations.
false
Banks and lenders use credit scores to determine..
The likelihood that someone is able to repay debt
Making purchases with a credit card means that you’re borrowing money with interest, and
pay much higher interest rates
young people
When you finance a new car, you will end up paying more than the sticker price.
true
While it may not always appear so, the majority of Americans live paycheck to paycheck.
true
Your greatest tool to building wealth is
your income
_require the borrower to put up collateral for the loan.
secured loans
Which of the following is part of the formula that determines a person’s FICO score?
Their history of payments made to lenders
There are certain things, like renting a car or booking a hotel room, that you cannot do without having a credit card.
false
Leasing a car is a method of financing where someone
Makes monthly payments on but does not own the vehicle
What is The Second Foundation?
Get out and stay out of debt
