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FHCE 3200 Exam 2 Questions and Correct
Answers/ Latest Update / Already Graded
mainstream lenders
Ans: banks, credit unions, auto financing, credit cards. heavily
rely on credit report and score
alternative lenders
Ans: check cashers, payday lenders, title loans, pawn shops,
used car loans. don't rely on credit score when making a
decision
payday loans
Ans: short term loan designed to be repaid within a few weeks
when borrower receives paycheck. write check when take out
loan and company will cash the check if not paid back in 2
weeks
avoiding expensive loans
Ans: have an emergency fund to withdraw $ from, borrow from
family, get a loan from bank
All rights reserved © 2025/ 2026 |
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truth in lending act
Ans: law that protects consumers who borrow money. includes
disclosure of terms and costs, right of rescission, advertising
rules, enforcement, billing statements, and high -cost mortgage
protection
personal loan
Ans: a small-dollar debt used to pay bills or make purchases.
types include secured loan, unsecured loan, installment credit,
line of credit, deposit advance, and P2P lending
secured loans
Ans: personal loan backed by collateral that can be taken if
borrower fails to repay loan
unsecured loan
Ans: personal loan not backed by collateral. sometimes called
signature loans and are considered riskier so hav e high interest
rate
installment loan
All rights reserved © 2025/ 2026 |
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Ans: personal loan where the borrower receives the full
amount of the loan upfront in a single lump sum. usually has a
fixed interest rate and payback period and repayment period is
1-5 yrs
personal line of credit
Ans: a personal loan that is similar to credit cards allowing the
borrower to maintain a revolving balance month to month.
usually unsecured, interest is only paid on money borrowed.
deposit advance
Ans: personal loan that is a short-term loan that is
automatically repaid when an electronic deposit is made.
borrower must have a checking account and a regular history of
deposits of payments. borrower pays 10% when loan is needed
and has 35 days to repay loan
Peer-to-Peer lending
Ans: a personal loan that allows borrower and lender to come
together on the internet. Must have a 650 credit score or higher
getting financial aid
All rights reserved © 2025/ 2026 |
FHCE 3200 Exam 2 Questions and Correct
Answers/ Latest Update / Already Graded
mainstream lenders
Ans: banks, credit unions, auto financing, credit cards. heavily
rely on credit report and score
alternative lenders
Ans: check cashers, payday lenders, title loans, pawn shops,
used car loans. don't rely on credit score when making a
decision
payday loans
Ans: short term loan designed to be repaid within a few weeks
when borrower receives paycheck. write check when take out
loan and company will cash the check if not paid back in 2
weeks
avoiding expensive loans
Ans: have an emergency fund to withdraw $ from, borrow from
family, get a loan from bank
All rights reserved © 2025/ 2026 |
, Page |2
truth in lending act
Ans: law that protects consumers who borrow money. includes
disclosure of terms and costs, right of rescission, advertising
rules, enforcement, billing statements, and high -cost mortgage
protection
personal loan
Ans: a small-dollar debt used to pay bills or make purchases.
types include secured loan, unsecured loan, installment credit,
line of credit, deposit advance, and P2P lending
secured loans
Ans: personal loan backed by collateral that can be taken if
borrower fails to repay loan
unsecured loan
Ans: personal loan not backed by collateral. sometimes called
signature loans and are considered riskier so hav e high interest
rate
installment loan
All rights reserved © 2025/ 2026 |
, Page |3
Ans: personal loan where the borrower receives the full
amount of the loan upfront in a single lump sum. usually has a
fixed interest rate and payback period and repayment period is
1-5 yrs
personal line of credit
Ans: a personal loan that is similar to credit cards allowing the
borrower to maintain a revolving balance month to month.
usually unsecured, interest is only paid on money borrowed.
deposit advance
Ans: personal loan that is a short-term loan that is
automatically repaid when an electronic deposit is made.
borrower must have a checking account and a regular history of
deposits of payments. borrower pays 10% when loan is needed
and has 35 days to repay loan
Peer-to-Peer lending
Ans: a personal loan that allows borrower and lender to come
together on the internet. Must have a 650 credit score or higher
getting financial aid
All rights reserved © 2025/ 2026 |
