If you receive money to buy goods or services now with the promise to pay for them later, you have used this.
What is credit?
100
This can be carried by individuals allowing them to make purchases without paying cash
What is a credit card?
100
Credit extended to a consumer allowing them to buy goods from a particular company and to pay for them later.
What is a charge account?
100
An investigation of a person's income, current debts, personal life and past history of borrowing and repaying debts.
What is a credit check?
100
This is an example of a durable good.
What are such things as cars, houses, and appliances? (Other answers may be acceptable)
200
This is the extra money the borrower has to pay on top of the principal for the privilege of borrowing money.
What is interest?
200
This functions much like a credit card at the store, but the money comes directly from the individual's bank account
What is a debit card?
200
The cost of credit expressed as a yearly percentage.
What is Annual Percentage Rate (APR)?
200
A number associated with the level of risk involved in lending to a specific person
What is a credit rating?
200
This is why people use credit.
What is to be able to buy and enjoy a good or service now rather than later?
300
The amount of money originally borrowed in a loan.
What is principal?
300
The maximum amount of goods and services a person can place on one's line of credit.
What is a credit limit?
300
Cost of credit expressed monthly in dollars and cents
What are finance charges?
300
Something of value that a borrower lets the lender claim if a loan is not repaid.
What is collateral?
300
Within 100 points, this would be considered to be a good credit score.
What is any number between 561-950?
400
An installment debt owed on houses, buildings, or land
What is a mortgage?
400
Manufactured goods that have a life span longer than three years
What are durable goods?
400
This financial institution provides the widest range of functions, including accepting deposits, lending funds and transferring funds among banks, individuals and businesses.
What are commercial banks?
400
A loan that is backed up by collateral.
What is a secured loan?
400
The largest installment debt in the United States comes from what people owe on this durable good.
What is home mortgages?
500
This type of loan is repaid in equal payments over a fixed period of time.
What is installment debt?
500
When a person is legally declared to be unable to pay off debts owed with available income.
What is bankruptcy?
500
A financial institution owned and operated by its members, providing savings accounts and low-interest loans to its members.
What are credit unions?
500
A loan guaranteed only by a promise to repay it (no collateral).
What is an unsecured loan?
500
What happens to the size of the monthly payment if you increase the length of time it takes to pay off on an installment loan?
What is the monthly payment goes down (or the total amount paid goes up)?