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What is your financial IQ?

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Creditors are required to tell you the APR that you will pay when you get a loan.

   

If you expect to carry a balance on your credit card, the APR is the most important things to look at when comparing credit card offers.

   

Your credit report includes employment data, your payment history, any inquiries made by creditors, and any public record information.

   

The finance charge on your credit card statement is what you pay to use credit.

   

Using extra money in a bank savings account to pay off high interest rate credit card debt is a good idea.

   

Your credit rating is not affected by how much you charge on your credit cards.

   

If your credit card is stolen and someone uses it before you report it missing, you are only responsi8ble for $50, no matter how much they charge on it.

   

If you have any negative information on your credit report, a credit repair agency can help you remove that information.

   

If you are behind on debt payments and go to a credit counseling service, they can get the federal government to apply your income tax refund to pay off your debts.

   

You should have an emergency fund that covers two to six months of your expenses.

   

If you have a savings accounts at a bank, you may have to pay taxes on the interest you earn.

   

If you buy certificates of deposit, savings bonds, or Treasury bills, you can earn higher returns than on a savings account, with little or no added risk.

   

With compound interest, you earn interest on your interest, as well as on your principal.

   

Whole life insurance has a savings feature while term life insurance does not.

   

The earlier you start saving for retirement, the more money you will have because the effects of compounding interest increase over time.

   

A stock mutual fund combines the money of many investors to buy a variety of stocks.

   

Employers are responsible for providing he majority of funds that you will need for retirement.

   

Over the long term, stocks have the highest rate of return on money invested.

   

Mutual funds pay a guaranteed rate of return.

   

All investment products bought at your bank are covered by FDIC insurance.

   

When you use your home as collateral for a loan, there is no change of losing your home.

   

You can save thousands of dollars in interest costs by choosing a 15-year rather than a 30-year mortgage.

   

If the interest rate on an ajustable-rate mortgage loan goes up, your monthly mortgage payments will also go up.

   

Repeatedly refinancing your home mortgage over a short period of time results in added fees and points that further increase your debt.

   

Making payments late on your bills can make it more difficult to take out a loan.

   

Your bank will usually call to warn you if you write a check that would overdraw your account.

   

The cash value of a life insurance policy is the amount available if you surrender your life insurance policy while you're still alive.

   

After signing a contract to buy a new car, you have three days to change your mind.

   

 

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This website is maintained by Leslie Lum and does not reflect the opinions or position of Bellevue Community College.  Contact llum@bcc.ctc.edu if you have any questions.

Last updated: 1/12/07