Money $mart Review Questions:
Borrowing Basics

1. How long will a bankruptcy stay on one's credit report?
2. What is a credit score?
3. When you close or pay off a credit account, is it removed from your credit report?
4. Are late payments reported to credit bureaus?
5. What should you do if there is an error on your credit report?
6. Give one example of how to build (or re-build) your credit.
7. What's the difference between a secured and an unsecured loan?
8. What is an APR?
9. Why do you think credit card companies require only a very small minimum monthly payment?
10. What is an installment loan?
11. What's the difference between a fixed rate and variable rate loan?
12. Explain the “three C's” of capacity, capital and character that lenders use to decide whether or not to loan money to you.
13. How does the proportion principal and interest change throughout the life of an amortized loan?
14. What is equity?

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Answers to review questions

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