3.7 How Credit Works Answers

How is a merchant credit card different from a title loan?

Georgia needs to periodically use her credit card for extra money to pay for medical and unexpected expenses. She usually pays it off every six months.Which type of repayment schedule is described in this scenario?

What is collateral?

Clarissa and Carlos are homeowners who have decided to purchase a piece of land adjacent to their home. The land is for sale for $10,000.Which loan would require them to use their vehicle as collateral?

What consequences do borrowers face if they miss many payments? Check all that apply.difficulty getting loansgarnished wageselimination of all creditlost collateralcompounded late fees

Read the information about two competing credit cards. Credit Card 1Credit Card 2Interest rate0% introductory rate, then 13.8% after one year12.1%Annual feeNoneNo annual fee in the first year, then $30 each year thereafterCredit Card 1 would be the better option if the borrower

Interest rates on credit cards

Lenders are prohibited from