BORROWING MONEY

Credit Scores

100

This part of a credit score is 35% of the total score and pertains to your timeliness.

What is PAYMENT HISTORY?

200

This part of the credit score makes up 30% of the total score and pertains to quantity.

What is AMOUNTS OWED?

300

This part of the credit score is 15% of the total and pertains to duration.

What is LENGTH OF CREDIT HISTORY?

400

This part of the credit score is 10% of the total and pertains to frequency.

What is APPLICATIONS?

500

This part of the credit score is 10% of the total and pertains to variety.

What is CREDIT MIX?

Loan Jargon

100

This term describes the total amount borrowed.

What is PRINCIPAL?

200

This is a signed document to legally establish a loan between two individuals.

What is a PROMISSORY NOTE?

300

This is a specific name for a contract pertaining to a home loan.

What is a MORTGAGE?

400

This is the term for the date by which the loan must be fully repaid.

What is MATURITY DATE?

500

This is another name for the interest that must be repaid on a loan.

What is a FINANCE CHARGE?

Five C's

100

This "C" pertains to the moral integrity of a borrower.

What is CHARACTER?

200

This "C" pertains to the likelihood that your income will continue to be or won't be reliable in the future.

What is CONDITIONS?

300

This "C" pertains to the ratio of your total debs to your total income.

What is CAPACITY?

400

This "C" pertains to your net worth, namely your assets minus your liabilities.

What is CAPITAL?

500

This "C" pertains to what you have of value that the lender could resell if you failed to pay your loan in a timely manner.

What is COLLATERAL?

Credit Cards

100

A credit card is not money, but rather this.

What is a LOAN?

200

This is the length of time between billings and is approximately one month in duration.

What is BILLING CYCLE?

300

Some credit cards have these, which often come with cash back rewards or travel credits.

What are ANNUAL FEES?

400

Interest will be charged on these types of balances on a credit card.

What is UNPAID?

500

These will be charged if you fail to make a payment on time or fail to make the minimum payment on your credit card.

What are PENALTIES?

Miscellaneous

100

You should only borrow money if you are confident that you can do this thing.

What is PAY IT BACK?

200

In order to finance a large purchase, you must ensure that you have a good one of these.

What is CREDIT HISTORY or CREDIT SCORE?

300

The four major credit card networks in the US include Visa, Mastercard, Discover and this.

What is AMERICAN EXPRESS?

400

This is a chart which describes how much of the principal and interest get paid with each payment.

What is an Amortization Table.

500

You can use a credit card for purchasing merchandise, transferring balances from another card, or receiving this.

What is a CASH ADVANCE?