- 1 Which is a desirable characteristics to look for when choosing a credit card?
- 2 Which is an example of an easy access credit?
- 3 What is a easy access credit?
- 4 What are characteristics of open end credit?
- 5 Which is considered a good credit practice?
- 6 Why is credit card a the better option?
- 7 What are 3 types of credit cards?
- 8 Which is an example of a closed end credit?
- 9 Which best describes the difference between simple and compound interest?
- 10 Which information can be found on a person’s credit report check all that apply?
- 11 How are mortgage and auto loans similar?
- 12 What does the value of collateral or down payment affect check all that apply?
- 13 What are the 5 C’s of credit?
- 14 What is the most commonly used form of open-end credit?
- 15 What are two types of credit?
Which is a desirable characteristics to look for when choosing a credit card?
the answer is: Annual fee
The amount is pretty big for users in lower income bracket. This is why no annual fees is seen as a desirable characteristic.
Which is an example of an easy access credit?
Pawnshops, payday loans, rent-to-own, and title loans are all examples of easy access credit and how people can get fast cash. Using these services can make a bad financial situation worse, and habitually using them can create a cycle of bad debt that can be difficult to escape.
What is a easy access credit?
Easy access credit refers to very short-term and usually very high interest loans. It’s a fancy way of saying payday loans, pawn shop transactions, or title loans.
What are characteristics of open end credit?
Open–end credit is a preapproved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due. The preapproved amount will be set out in the agreement between the lender and the borrower.
Which is considered a good credit practice?
Which is considered a good credit practice? Pay more than the minimum amount that is due. This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the credit card is 14%.
Why is credit card a the better option?
Credit cards allow you to borrow money that must be repaid. Credit cards offer several advantages, including the chance to build credit and improved security measures. You get to the register and open up your wallet.
What are 3 types of credit cards?
There are three types of credit card accounts: bank-issued credit cards (such as Visa and MasterCard), store/priority cards (such as the Bay and Sears) and travel/entertainment cards, also called charge cards (such as American Express or Diner’s Club).
Which is an example of a closed end credit?
Common types of closed–end credit instruments include mortgages and car loans. For example, if a customer fails to repay an auto loan, the bank may seize the vehicle as compensation for the default. The difference between closed–end credit and open credit is mainly in the terms of the debt and the debt repayment.
Which best describes the difference between simple and compound interest?
Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as “interest on interest.”
Which information can be found on a person’s credit report check all that apply?
These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the date you opened the account, your credit limit or loan amount, the account balance and your payment history.
How are mortgage and auto loans similar?
The loan is issued by the seller. Money is given to the borrower monthly. Interest rates are rarely charged.
What does the value of collateral or down payment affect check all that apply?
The answer is the amount borrowed the interest rate and the repayment schedule. Basically, loans secured by collateral incur lower interest rates that unsecured loans. You credit score will also say a lot about you in terms of the amount borrowed and repaid money.
What are the 5 C’s of credit?
The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five Cs of credit are character, capacity, capital, collateral, and conditions.
What is the most commonly used form of open-end credit?
Credit cards are the most common form of open–end credit.
What are two types of credit?
It may seem like there are endless types of credit to choose from at your local financial institution, but there are actually only two types: revolving accounts and installment credit.