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FHCE 3200 Questions and Correct
Answers/ Latest Update / Already Graded
mainstream lenders
Ans: banks, credit unions, auto manufactured financing, credit
card issuers, merchant credit cards
alternative lenders
Ans: check cashers, payday lenders, title loans, pawn shops,
seller
payday loans
Ans: short term loan designed to be repaid within a few weeks
when the borrower receives the paycheck
pawn shops and title loans
Ans: base their loan on the value of collateral
how to avoid expensive loans
Ans: Have an emergency fund - save between $1,000 - $2,000
All rights reserved © 2025/ 2026 |
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Borrow the money from family or friends
Obtain a loan from a bank, credit union, or other mainstream
financial institution
Work more hours to increase pay
Sell something of value
trust in lending act
Ans: federal law that protected consumers who borrow money
personal loans
Ans: small dollar debt the can be used to pay bills or make
purchases
Options for borrowing money
Ans: cash advances, ask, request, contact
cash advance
Ans: borrowing cash on your credit card
All rights reserved © 2025/ 2026 |
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secured loan
Ans: backed by collateral
-property than can be taken by the lending institution if the
borrower fails to repay the loan
unsecured loans
Ans: not backed by collateral
-signature loans
-considered to be riskier than secured loans and therefore
charge a higher interest rate
installment loan
Ans: the borrower receives the full amount of the loan upfront
in a single lump sum
-fixed interest rate
-payback period fixed
-1-5 years
line of credit
All rights reserved © 2025/ 2026 |
, Page |4
Ans: similar to credit cards allowing the borrower to maintain a
revolving balance month to month
deposit advance
Ans: short term loan that is automatically repaid when the next
qualifying electronic deposit is made
-35 days
-
peer 2 peer lending
Ans: allows a borrower and lender to come together via the
internet
-18 years and older
-lending score
-1,000-5,000
-650 credit minimum
options to pay for college
Ans: -work
-scholarships
-savings
-federal student loans
All rights reserved © 2025/ 2026 |
FHCE 3200 Questions and Correct
Answers/ Latest Update / Already Graded
mainstream lenders
Ans: banks, credit unions, auto manufactured financing, credit
card issuers, merchant credit cards
alternative lenders
Ans: check cashers, payday lenders, title loans, pawn shops,
seller
payday loans
Ans: short term loan designed to be repaid within a few weeks
when the borrower receives the paycheck
pawn shops and title loans
Ans: base their loan on the value of collateral
how to avoid expensive loans
Ans: Have an emergency fund - save between $1,000 - $2,000
All rights reserved © 2025/ 2026 |
, Page |2
Borrow the money from family or friends
Obtain a loan from a bank, credit union, or other mainstream
financial institution
Work more hours to increase pay
Sell something of value
trust in lending act
Ans: federal law that protected consumers who borrow money
personal loans
Ans: small dollar debt the can be used to pay bills or make
purchases
Options for borrowing money
Ans: cash advances, ask, request, contact
cash advance
Ans: borrowing cash on your credit card
All rights reserved © 2025/ 2026 |
, Page |3
secured loan
Ans: backed by collateral
-property than can be taken by the lending institution if the
borrower fails to repay the loan
unsecured loans
Ans: not backed by collateral
-signature loans
-considered to be riskier than secured loans and therefore
charge a higher interest rate
installment loan
Ans: the borrower receives the full amount of the loan upfront
in a single lump sum
-fixed interest rate
-payback period fixed
-1-5 years
line of credit
All rights reserved © 2025/ 2026 |
, Page |4
Ans: similar to credit cards allowing the borrower to maintain a
revolving balance month to month
deposit advance
Ans: short term loan that is automatically repaid when the next
qualifying electronic deposit is made
-35 days
-
peer 2 peer lending
Ans: allows a borrower and lender to come together via the
internet
-18 years and older
-lending score
-1,000-5,000
-650 credit minimum
options to pay for college
Ans: -work
-scholarships
-savings
-federal student loans
All rights reserved © 2025/ 2026 |
