Credit Basics
This term describes an arrangement where you receive goods or money now and pay later.
What is credit?
This rate represents the yearly cost of borrowing money.
What is APR (Annual Percentage Rate)?
This is the highest credit score.
What is 850?
This equation shows how what a business owns relates to what it owes and the owner’s share.
What is the accounting equation?
This payment method withdraws money directly from your bank account immediately
What is a debit card?
In a lending relationship, this is the person or business that provides the money.
Who is the creditor?
This formula is used to calculate simple interest using principal, rate, and time.
What is P × R × T?
These organizations collect and share information about your credit history.
What are credit bureaus?
Money a business spends to operate is known by this term.
What are expenses?
This payment method allows you to borrow money and pay it back later, often with interest.
What is a credit card?
This type of credit is commonly offered by stores to everyday shoppers.
What is consumer credit?
This factor affects the total cost of credit because the longer you take to repay, the more interest you pay.
What is the repayment period?
This document shows your borrowing history, payment behavior, and account status.
What is a credit report?
This type of budget is created when a business is first getting started.
What is a start-up budget?
Using this type of card can help build a credit history when payments are made on time.
What is a credit card?
This kind of loan requires property or an asset to guarantee repayment.
What is secured credit?
This term describes the total extra money paid to borrow funds.
What is interest?
This type of company attempts to recover unpaid bills for a fee.
What is a collection agency?
These are items a business owns that have value.
What are assets?
If you spend more than you have in your account using a debit card, you may face an ___________ fee.
What is an overdraft fee?
This word refers to the original amount of money borrowed before interest is added.
What is the principal?
As a loan is paid off, the interest portion of each payment usually gets smaller over time. What table tracks this?
What is Amortization Table?
One of the Three Cs of credit that refers to how reliable a borrower has been in the past.
What is character?
This process checks financial records to make sure they are accurate.
What is an audit?
This box on a credit card agreement summarizes key information like interest rate, fees, and penalties.
What is a Schumer’s box?