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Scams
APR & Finance ChargesThree C’s Credit Report Loans
The Credit Game
The Answer is:
Obtaining the use of money that you do not have, but promise to pay back.
The Question is:
What is credit?
The Answer is:
Two important consumer credit protection laws.
The Question is:
What is the Truth in Lending Act and the Fair Credit Reporting Act?
The Answer is:
Additional money that has to be paid back that is added to an initial loan.
The Question is:
What is interest?
The Answer is:
Goods (tangible or intangible) that investors hope will retain value or increase in value.
The Question is:
What are assets?
The Answer is:
If Travis borrows $2,000 at a 10% annual interest rate, how much interest he will pay back in 5 years.
The Question is:
What is $1,221.02?
The Answer is:
The amount of money obtained through a loan.
The Question is:
What is principal?
The Answer is:
A record of an individual’s personal credit history.
The Question is:
What is a credit report?
The Answer is:
Your ability to qualify for a loan depends on these three things called the “Three Cs.”
The Question is:
What are Character, Capacity, and Collateral?
The Answer is: If Patricia borrows $1,000 at 6% annual interest, how much interest she will pay back in 3 years.
The Question is:
What is $191.01 ?
The Answer is:
The three largest credit bureaus.
The Question is:
What are Equifax, Experian, and TransUnion?
The Answer is:
The first thing you should do when deciding to take out a loan.
The Question is:
What is check your credit report?
The Answer is:
What accumulates over time when you have a loan.
The Question is:
What is interest?
The Answer is:
Name two types of lending institutions in your community.
The Question is:
What are banks, savings and loans, credit unions, and finance companies?
The Answer is:
Two federal laws that regulate consumer credit.
The Question is:
What is the Fair Credit Reporting Act and the Equal Credit Opportunity Act?
The Answer is:
Two places where consumers can look for information about interest rates on auto loans.
The Question is:
What is online and at local banks and credit unions?
The Answer is: When scam artists get your name, SS number, credit card number, or other personal information that can be used to open new credit card accounts.
The Question is:
What is identity theft?
The Answer is:
A high-cost loan that allows a person to get cash until their next payday (usually 2 weeks) with no credit background check.
The Question is:
What is a payday loan?
The Answer is:
Type of fraud where the first participants receive payments for recruiting additional members.
The Question is:
What is a pyramid scheme?
The Answer is:
This type of scam occurs when you are contacted by a company offering a loan if you first pay an upfront fee. Then, they don’t give you a loan.
The Question is:
What is an advance fee loan scam?
The Answer is:
This type of scam occurs when a company offers to provide scholarships, but first you have to pay an upfront fee.
The Question is:
What is a college financial aid scam?
The Answer is:
What APR stands for.
The Question is:
What is annual percentage rate?
The Answer is: What are the three methods of calculating credit card interest?
The Question is:
What are average daily balance, adjusted balance, previous balance?
The Answer is:
The APR charged if Sheila secures a $5,000 loan with 5% add-on rate for one year.
The Question is:
What is 9.2%?
The Answer is: The APR charged if John secures a $6,000 loan with a 7% add-on rate for one year.
The Question is:
What is 13.6%?
The Answer is:
Finance charge if David borrows $2,000 at a 10% add-on rate for 3 years.
The Question is:
What is $600?
