A friend wants to buy a new kitchen and borrow £1,000 towards the payment. He plans to repay this credit within two years. Which from the two bank offers is better?
An offer, where interest rate is 10%, the monthly instalment is £60 and the annual percentage rate is 18%
An offer, where interest rate is 7%, the monthly instalment is £55 and the annual percentage rate is 20%
They are both the same
What is the most useful piece of information when comparing credit offers?
Amount of credit
Interest rate
Annual percentage rate
Your employer has lent you £120 for one month. She wants to charge 5% interest. How much will you have to pay her in total?
£6
£60
£126
£160
You pay your balance on your credit card every month. Which of the following credit cards would be best for you?
A credit card with a 5% fixed interest rate
A credit card with 0% interest rate for the first six months
A credit card that offers 2% cash back rewards on all purchases
Which of the following products is not usually associated with borrowing?
Credit card
Mortgage
Debit card
Car loan
A car leasing company offers two different offers on a new car costing £10,000?
Lease A: Deposit 30%, with 36 instalments of £210
Lease B: Deposit 20%, with 36 instalments of £230
Both leases are the same
When choosing a mortgage a bank offers you two options for interest rates - one fixed for 5 years at 4.15% per annum and the other fixed for 3 years at 4.15% per annum. If you expect interest rates to rise, which of these two is preferable?
Fixed for 3 years
Fixed for 5 years
Both are the same
Which of the following statements is true?
Your bad loan payment record with one bank will be mentioned if you apply to another bank for a loan.
If you missed a payment more than 3 years ago, it cannot be considered in a loan decision.
Banks share the credit history of their clients with each other and usually know of any loan payments that you have missed.
Credit history in each bank is calculated differently so your bad loan payment record with one bank will not necessarily be mentioned if you apply to another bank for a loan.
When would it be financially beneficial for you to borrow money to buy something now and repay it with future income?
When some clothes you like go on sale.
When the interest on the loan is greater than the interest you get on your savings.
When you need to buy a car to get a much better paid job.