Sources and types of Credit
Asset that increases in value over time
Appreciating Asset
Do you need a credit card to rent a vehicle?
No
When an asset loses value over time that's what?
Depreciation
If you miss a credit card payment you will have this type of fee?
Late fee
A loan for a fixed amount of money that’s paid back in monthly installments
Installment Credit
A statistical number used to represent a consumer’s creditworthiness
Credit Score
Paying off debt is not a math problem it is a _______ problem.
Behavior
The first step to getting out of debt is what?
Quit borrowing money
Something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender
Collateral
A company that collects credit rating information and makes it available to creditors
Credit Bureau
The first step in the snowball method is to list all your debts from_________ to _______
Smallest and Largest
If you go beyond your spending limit on your credit card you will pay this type of fee.
Over-the-limit fee
A legal claim against (or right to own) an asset until the debt (loan) is repaid
Lien
Credit that automatically renews whenever a payment is made to reduce the debt.
A credit card works this way.
Revolving Credit
When you fail to repay a loan on time, you're referred as being in ____
Default
Annual Fee
A lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash
Predatory Lender
When the value of an asset falls below what is owed on it.
Negative Equity
The amount of time you have to pay back a loan is called the _____ of the loan
Term