Everfi Module 3 Questions and Answers Graded A

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Everfi Module 3 Questions and Answers Graded A What is a Money Order? ✔✔A way to pay up front so the check can't bounce What is a debit card? ✔✔A card linked directly to your bank account What is a cashier's check? ✔✔a check that comes directly out of your bank account, usually for a fee What is a credit card? ✔✔A card that let's you borrow money to make a purchase What is a pre-paid card? ✔✔Type of credit card preloaded with money so you don't overspend What is a Pay-Day Loan? ✔✔small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck What are cash advances? ✔✔a loan from your credit card Which payment type should you use when trying to budget? ✔✔debit card What is APR? ✔✔charged amount on an unpaid credit amount How do you find out what the APR is? ✔✔On the disclosure statement of the credit card Why is a low APR better? ✔✔Because less money will be charged What can increase your APR? ✔✔missing/late payments What is a credit limit? ✔✔the maximum amount of credit you can spend What does it mean if you make the minimum payment on your credit card? ✔✔you are paying the least amount to pay off the major amount owed Which payment types take money directly out of your checking account? ✔✔debit card check ✔✔a wrtten, dated, and signed payment type that directs a bank to pay a definite sum pf money to a payee Cashier's Check ✔✔A payment type that is paid for upfront and guaranteed by the bank not to bounce. money order ✔✔a payment type that can be purchased at a variety of locations (convience stores,banks, etc.) debit card ✔✔A payment type that allows you to make electronic purchases that debit the cost of the purchase directly from your checking account. credit card ✔✔a payment type which the company provides a short-term loan that you can use to make everyday purchases Merchant Credit Card ✔✔A card that you sign up for at a store, which may offer discounts or other rewards. These cards function like a regular credit card. charge card ✔✔A payment type that works just like credit cards except the balance must be paid in full every month. Prepaid card ✔✔A card that allows you to put a specific amount of money onto them. Prepaid cards usually come with additional fees and charges. cash advance ✔✔A loan of cash you obtain with a credit card. Payday Lenders ✔✔Payday lenders offer small cash loans, usually in the range of $100 to $500, with payment due in full at the borrower's next paycheck. interest ✔✔the fee someone pays to be able to borrow money Credit History ✔✔a record of your past borrowing and repayments Online Transfer ✔✔A transfer of funds from one account or individual to another through a bank's website or mobile application.

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