Vocab 1
Types of Credit
Vocab 2
True and False
Vocab 3
100
Amount you pay for using credit.
What is Interest?
100
Typically used for large purchases such as a car or an appliance.
What is Installment Loan?
100
Length of time you have to pay off loan.
What is Loan Term?
100
Special offers decrease short-term costs of credit cards.
What is True?
100
Length of time before interest kicks in.
What is Grace Period?
200
Yearly charge you pay to use credit.
What is an Annual Fee?
200
Usually has the highest interest rate.
What is Credit Card?
200
Maximum amount of credit a lender will give to customer.
What is Credit Limit?
200
Credit bureaus must delete unfavorable information after 15 years.
What is False?
200
Record of your personal financial transactions.
What is Credit Report?
300
Personal information is used without your permission.
What is Identity Theft?
300
Used specifically for a loan to purchase a home.
What is Mortgage?
300
Amount of money loaned to you with the expectation that it will be paid back later.
What is Credit?
300
Your credit limit cannot increase over time.
What is False?
300
Charge for setting up a loan.
What is Origination Fee?
400
Public company that provides data and decision making services. Most popular type of credit score.
What is FICO?
400
Used for tuition and other college expenses.
What is Student Loan?
400
The cost of the loan per year as a percentage of the amount borrowed.
What is APR?
400
FreeCreditReport.com offers free credit reports whenever you need them.
What is False?
400
Legal process to get out of debt when you can't make payments.
What is Bankruptcy?
500
The ability to repay a loan, key factors lenders look for are your income and employment history.
What is Capacity?
500
The type of credit that has no payoff deadline.
What is Credit Card?
500
An asset of value lenders can take from you if you don’t repay the loan. Typically for mortgage or car loan.
What is Collateral?
500
Rising income and steady employment gives lenders confidence.
What is True?
500
Hike up your interest rate for one late payment.
What is Universal Default Clause?
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