Answer:
See below each answer with its expecific explanation
<u>Question 1 options:
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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.
<u>Question 2 options:
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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.
<u>Question 3 options:
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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.
