Intro to Credit Quiz & Young People w/ Credit Cards

Which word represents the total cost of the item you’re purchasing on credit minus any down payment you make upfront?

Principal

Each of the following represents an installment loan EXCEPT…

Credit card

examples that are true

• Home mortgage

• Auto loan

• Student loan

What action will most likely decrease a person’s net worth for at least the next 6 months?

Use a loan to buy a car

Young People & Credit Cards

2 minute break

What is true about debit and credit cards?

• Both can be used for purchases online or in stores

Felix opens a credit card w/ no annual fee, so he assumes that using the credit card regularly will be absolutely free for the next 2 years while he finishes grad school. Why is his assumption wrong?

Unless he pays the whole bill month, he will pay interest according to his APR

What is a Schumer Box?

A standardized way of presenting the key terms of your credit card agreement