test 4

Question 1

what is an indicator of how well someone pays off their debt,not how well they handle money

Answer 1

A credit score

Question 2

what is something that credit card commercials do not show you

Answer 2

people making monthly payments for years

Question 3

are there certain things like renting a car or renting an airbnb that you can do without having a credit card

Answer 3

yes

Question 4

what do banks and lenders use credit scores to determine

Answer 4

the likelyhood that someone is able to repay debt

Question 5

when you look over your credit report, its important to make sure of what

Answer 5

no lines of credit have been open under your name without your knowledge

Question 6

leasing a car is a method of financing where someone does what

Answer 6

make monthly payments on the car but does not own it

Question 7

who pays higher intrest rates when making purchases with a credit card that your borrowing money with intrest

Answer 7

young people

Question 8

why should you regularly check your credit report when you turn 18

Answer 8

signs of idenity fraud

Question 9

what requires the borrower to put up collateral for a loan

Answer 9

secured loans

Question 10

what stipulation comes when you sigh a car lease agreement and you have to pay a penalty for

Answer 10

go over the prestablished milage cap

Question 11

what happens when ou finance a car

Answer 11

you will end up paying more than the stcker price

Question 12

what do credit card compnies make the most profit from

Answer 12

charging intret to customers

Question 13

are loans that directly help you advance in life acceptable loans

Answer 13

no

Question 14

do the majority of americans live paycheck to paycheck

Answer 14

yes

Question 15

what is the second foundation

Answer 15

get out of debt and stay out of debt

Question 16

what is the smartest way to buy a car

Answer 16

buy it in cash

Question 17

what does the debt snowball method involve

Answer 17

paying debts from smallest to largest

Question 18

credit is a business that makes money for who

Answer 18

credit cards companies,lenders, banks

Question 19

what is the formula that determines a person’s FICO score

Answer 19

there history payed to lenders

Question 20

how you spend you money and give your money does what

Answer 20

is a reflection of your personal values

Question 21

give an example of an appreciating asset

Answer 21

a house

Question 22

what do predatory lenders get their reputation from

Answer 22

from charging high fees for loans and targeting desprate people

Question 23

what is an example of a depreciating asset

Answer 23

car

Question 24

what is your greatest wealth building tool

Answer 24

income

Question 25

credit cards that offer flashy rewards often charge you what

Answer 25

high annual fees

Question 26

what is the total amount of a car loan plus the taxes and fees

Answer 26

the principal

Question 27

what happens when you buy with crdit vs. debit

Answer 27

you typically spend more with credit than you would with cash

Question 28

explain why credit cards are a bad idea. how coukd this negativly affect your life

Answer 28

they are a bad idea since you will end up paying mor money in the long run leading you to increasing your debt

Question 29

what is the best way to avoid falling inot debt

Answer 29

cash

Question 30

list 3 ways the credit card industry makes money

Answer 30

intrest fees annual fees merchant fees

Question 31

what is it called when credit cards companies charge 2-3% fee for every purchase made with credit cards

Answer 31

merchant fees

Question 32

what is the danger of putting up collateral for a loan

Answer 32

you lose the asset if you fail to repay it

Question 33

what is the difference bewteen an appreciating asset and a depreciating asset? give an example of both

Answer 33

an appreciating asset goes up in value over time like a car while a depreciating asset losses value over time like a car

Question 34

explain the importance of good credit is a myth

Answer 34

because all credit is bad

Question 35

describe marketing tactics that the credit indusrty uses to trick people into getting into debt

Answer 35

offering low or zero interst , requiring only minimum monthly payments, and offering cash back and other rewards