What are the two definitions of credit? - answer✔Borrowing money now, promise to pay later
with interest; Borrowing capacity of the individual
What is a payday loan? - answer✔High interest short term borrowing option
What is the APR for a payday loan? - answer✔652% APR (Annual Percentage Rate)
Does paying a payday loan on time build credit? - answer✔No
What is a line of credit? - answer✔Borrowing option that needs approval for a set amount of
funds, only charged interest if you use those funds
What is a benefit of a line of credit? - answer✔You can use and reuse at your will/convenience
What is a con of a line of credit? - answer✔Daily interest that needs a minimum monthly
payment
What is the APR for a line of credit? - answer✔3-20%
What is a credit card? - answer✔Borrowing option with a plastic card of a credit limit to borrow
from
What is the benefit of most credit cards? - answer✔Allow purchases within a certain time
period without interest if you pay the statement on time
What factors determine the interest and annual fees of a credit card? - answer✔The card and
bank
What is the APR for a credit card? - answer✔8-40%
What is an installment loan? - answer✔Borrowing a lump sum of funds to a certain limit
What is a benefit of an installment loan? - answer✔Funds available immediately
What is a responsibility of an installment loan? - answer✔Paying a series of payments overtime
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