Vocabulary
Money paid regularly at a particular rate
What is Interest?
An arrangement to buy goods and services on account without making immediate cash.
What is Trade Credit?
This is the ability to repay loans.
What is Capacity?
What are the 4 C's of Credit?
What is capacity, capital, collateral, and credit?
a provision in most loan and insurance contracts, which allows payment to be received for a certain period of the time after the actual date
What is Grace Period?
This is an arrangement between a blender and a borrower that allows the latter to access credit repeatedly.
What is Open-End Credit?
the money you've already invested and the money you're seeking to invest.
What is Capital?
What are the four pillars of credit?
Credit score, income,employment,and down payment
A rate that shows the total cost of credit annually
What is APR (Annual Percentage Rate)?
Fill in the blank. _____ credit is a type of credit when lenders trade among themselves.
What is Mutual?
These are the terms that levied on the loan and how they are changed.
What is Conditions?
What are 4 main factors in determine your credit score?
Payment history, amounts owed, credit mix, lengths pf credit history
This is the amount of money the credit card issuer charges you for having the account each year.
What is Annual Fee?
Which credit is automatically renewed when debts are paid off?
A. Bank Credit
B. Service Credit
C. Revolving Credit
What is C. Revolving Credit?
This characteristic refers to your credit history.
What is Character?
What are credit score killers?
Late payments, students loans, mortgages, and foreclosure
This is the average amount you owe on the credit during each day of the filing cycle.
What is the Average Daily Balance?
What is Installment Credit?
This refers to personal assets like your home.
What is Collateral?
Factors that can improve credit score?
Pay bills on time, review your credit report, keep credit utilization rate low and limit applying for new accounts