Question

Question 1 (3 points)

Answer 1

Answer:

See below each answer with its expecific explanation

Question 1 options:

Revolving Credit

Eplanation:

1.  When you're approved to borrow up to a specific credit limit and you can choose how much to use and when to pay it off.

Credit Score

Eplanation:

6.  A number that tells lenders how likely you are to make payments on time.

Non-Installment Credit

Eplanation:

3.  Credit paid back all at once, in a single payment.

Credit History

Eplanation:

2.  One part of a credit report.

Credit

Eplanation:

4.  A commitment to pay for something in the future.

Installment Credit

Eplanation:

5.  A commitment to pay back a specific amount in a specific number of equal payments.

Question 2 options:

Open a Bank Account

Eplanation:

5.  The first step in establishing credit.

Co-Signing

Eplanation:

6.  An alternative to establishing credit if unable to get a credit card.

Debt Settlement Program

Eplanation:

2.  Programs that claim they can get you out of debt by negotiating the debt to lower amounts and working out a payment plan.

Bankruptcy

Eplanation:

3.  Legal action filed when you can't pay back creditors and puts your finances under court supervision.

Better Business Bureau (BBB)

Eplanation:

1.  An organization that reports on the reliability and ethics of companies and other organizations.

Default

Eplanation:

4.  Failure to make a payment.

Question 3 options:

Loan

Eplanation:

1.  Money you borrow from a person or organization with a commitment to pay back the amount in full.

Advantages of Credit Cards

Eplanation:

4.  Incentive programs, protection, and building credit.

Annual Percentage Yield (APY)

Eplanation:

2.  Annual interest rate that accounts for compounding.

Fees and Interest

Eplanation:

3.  disadvantages of credit cards.

Annual Percentage Rate (APR)

Eplanation:

5.  Annual interest rate that does not account for compounding.