| A | B |
|---|
| When items are bought on credit and paid for over a long period of time, the cost to the buyer... | is more than if the items were bought with cash |
| What is one way to build a good credit history? | open and carefully manage a checking account |
| Exclusing a mortgage payment, the maximum percentage of takehome pay that should go toward loan payments is.... | 20% |
| What is some information that you should ask a lender? | annual fee, the APR, the interest rate, the grace period, the credit limit or the loan term |
| What ar three factors that lenders include in a credit score for a consumer? | check the borrower's: capacity, which is the ability to repay; character, which is how trustworthy the borrower is; capital which represents personal items of value |
| What are two entities that may review your credit report? | potential lenders, potential employers |
| What are two ways to get out of debt? | consistently spending less than you earn, making minimum payments on all your loans, putting extra payments towards the loan with high interest |
| The longer the length of the loan... | the more expensive it will be in terms of interest |
| The higher the interest rate... | the higher the cost of credit |
| When you use credit... | compounding is not working for you |
