Podcast
Questions and Answers
Money that a lender makes available to a borrower with the understanding that the borrower will repay the money in the future.
Money that a lender makes available to a borrower with the understanding that the borrower will repay the money in the future.
CREDIT
Fees charged by a lender on borrowed money.
Fees charged by a lender on borrowed money.
INTEREST
The price one pays for the right to use another party's money and stated as a percentage of the amount borrowed.
The price one pays for the right to use another party's money and stated as a percentage of the amount borrowed.
INTEREST
Lower monthly payments.
Lower monthly payments.
Signup and view all the answers
Credit that is extended for a short term, such as 30 days or less.
Credit that is extended for a short term, such as 30 days or less.
Signup and view all the answers
Used for specific purchases but allows the borrower more time to repay the money
Used for specific purchases but allows the borrower more time to repay the money
Signup and view all the answers
The amount of money outstanding on a loan
The amount of money outstanding on a loan
Signup and view all the answers
Allows consumers to borrow up to some preset maximum amount. An example would be a credit card.
Allows consumers to borrow up to some preset maximum amount. An example would be a credit card.
Signup and view all the answers
A numeric score that uses your credit history to assess your creditworthiness.
A numeric score that uses your credit history to assess your creditworthiness.
Signup and view all the answers
When someone uses your personal information without your permission for personal gain.
When someone uses your personal information without your permission for personal gain.
Signup and view all the answers
This involves simply copying your credit card or debit card numbers from your cards.
This involves simply copying your credit card or debit card numbers from your cards.
Signup and view all the answers
When someone improperly accesses your personal information by posing as someone who needs data for one reason or another.
When someone improperly accesses your personal information by posing as someone who needs data for one reason or another.
Signup and view all the answers
It is known when pretexting occurs online.
It is known when pretexting occurs online.
Signup and view all the answers
It is even more complex, uses e-mail viruses to redirect you from a legitimate web site to an official-looking web site designed to obtain your personal information
It is even more complex, uses e-mail viruses to redirect you from a legitimate web site to an official-looking web site designed to obtain your personal information
Signup and view all the answers
Type of credit that is typically started at the time of purchase for a specific asset.
Type of credit that is typically started at the time of purchase for a specific asset.
Signup and view all the answers
Someone other than the borrower who agrees to sign the loan document and to repay the loan if the original borrower stops making payments.
Someone other than the borrower who agrees to sign the loan document and to repay the loan if the original borrower stops making payments.
Signup and view all the answers
The rate that factors in all the financing costs so that borrowers know exactly what they are paying and can make informed decisions.
The rate that factors in all the financing costs so that borrowers know exactly what they are paying and can make informed decisions.
Signup and view all the answers
A loan that has some asset pledged against the loan so that the lender is assured of winding up with some valuable asset if the borrower fails to pay off the loan.
A loan that has some asset pledged against the loan so that the lender is assured of winding up with some valuable asset if the borrower fails to pay off the loan.
Signup and view all the answers
Assets that have been pledged against loan repayment.
Assets that have been pledged against loan repayment.
Signup and view all the answers
Loans that have no collateral pledged against the loan.
Loans that have no collateral pledged against the loan.
Signup and view all the answers
Type of loan taken out to obtain a home.
Type of loan taken out to obtain a home.
Signup and view all the answers
The interest rate remains the same for the life of the loan. This means the payment will never go up or down.
The interest rate remains the same for the life of the loan. This means the payment will never go up or down.
Signup and view all the answers
It is one where the rate may go up or down over time.
It is one where the rate may go up or down over time.
Signup and view all the answers
An extremely low interest rate for a short period of time that is used as a deal sweetener. It designed to make your first payments as low as possible and encourage you to take out a loan. It used on all types of loans including vehicle and home loans
An extremely low interest rate for a short period of time that is used as a deal sweetener. It designed to make your first payments as low as possible and encourage you to take out a loan. It used on all types of loans including vehicle and home loans
Signup and view all the answers
It is higher interest rate mortgage loans made to people with poor credit scores.
It is higher interest rate mortgage loans made to people with poor credit scores.
Signup and view all the answers
Allows a homeowner to borrow against the equity in his or her home.
Allows a homeowner to borrow against the equity in his or her home.
Signup and view all the answers
It is the difference between the home's value and the amount owed to a lender.
It is the difference between the home's value and the amount owed to a lender.
Signup and view all the answers
Additional insurance coverage to cover things such as jewelry or valuable heirlooms that are often not fully covered by a typical insurance policy.
Additional insurance coverage to cover things such as jewelry or valuable heirlooms that are often not fully covered by a typical insurance policy.
Signup and view all the answers
