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25 Cards in this Set
- Front
- Back
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Planned buying requires... |
Thinking Through the details |
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What is the rule of 3? |
At least 3 sources |
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What should you never pay for a new vehicle? |
Manufacturers price (or full price) |
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Rebate |
A partial refund of a purchase price offered as an inducement to buy |
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3 things that impact a car loan or any loan |
1. Amount of loan 2. Interest rate 3. Length of loan |
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Annual percentage rate |
The cost of credit on a yearly basis stated as a percentage rate |
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Annual percentage rate |
The cost of credit on a yearly basis stated as a percentage rate |
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Percentage yield |
Return on interest, based on interest rate and compounding frequency |
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Financial charge |
Cost of interest and fees over and above the amount borrowed |
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2 steps to manage credit cards wisely |
1. Know the due date 2. Know the grace period |
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Types of credit card accounts |
1. Bank credit card 2. Retail credit card 3. Prestige bank credit card |
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Acceleration |
Clauses are a common feature of installment loans |
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Downside of credit |
1. Reduces financial flexibility 2. Tempting to overspend 3. Allows you to be impulsive |
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How long does bankruptcy stay on your credit report |
10 years |
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What 2 items impact your credit score the most |
Credit history and amounts of debt |
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Credit |
Where goods, services or money is received in exchange for a promise to repay at a later date |
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Warranty |
A promise about the quality of the product for a specified period of time |
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4 reasons why a car is a terrible investment |
1. Depreciates in value 2. Always needs to be replaced 3. Requires maintenance 4. Insurance is expensive |
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2 types of credit |
1. Installment credit 2. Non-installment (or revolving) credit |
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Grace period |
Time between the credit purchase and the time of the payment |
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Using plastic increases someones spending by |
33%-47% |
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Your account is _____ if you're late on a payment and your interest can jump from 18% to ____. |
Default 29% |
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Fixed rate |
A loan where the interest rate doesn't change over time (ex. Mortgage or car loan) |
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Fixed rate |
A loan where the interest rate doesn't change over time (ex. Mortgage or car loan) |
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Variable rate |
A loan where the interest rate can change (ex. Home adjustable rate) |
