Credit Basics
What number represents a consumer’s creditworthiness?
Credit Score
Something offered as security for a loan.
Collateral
Credit cards charge this extra cost for borrowing.
Interest
Paying more than sticker price happens when you ______ a car.
Finance
Your greatest tool for building wealth.
Income
Who collects credit information and shares it with lenders?
Credit Bureaus
A home that increases in value over time is an example of an __________ asset.
Appreciating
Fee charged to stores for each credit card purchase.
Merchant Fee
Leasing a car means you pay but don’t ______ it.
Own
Second Foundation of personal finance: Get out and stay out of ______.
Debt
Failure to repay a loan on time.
Default
A car that loses value each year is a __________ asset.
Depreciating
Flashy reward cards often include a high annual ______.
Fee
Car lease penalties happen if you exceed the ______ cap.
Mileage
Charging high fees to desperate borrowers defines a __________ lender.
Predatory
Type of loan that requires collateral.
Secured Loan
Original amount borrowed before interest.
Principal
Credit card companies make most profit from charging __________.
Interest
Total amount of car loan plus taxes and fees.
Principal
How you spend and give your money is a reflection of your ______.
Value
Paying off debts from smallest to largest is called the ______ method.
Debt Snowball
When you owe more than your asset is worth, it’s called __________.
Negative Equity
Type of credit that renews when payments are made.
Revolving Credit
The smartest way to buy a car is to pay in ______.
Cash
Credit isn’t a wealth-building tool; it makes money for __________.
Credit Card Companies