Credit/Loan Types
An agreement where the bank gives you money and then you pay them back with set monthly payments and an agreed repayment length.
What is a loan?
The original amount borrowed on a loan.
What is the principal?
An interest rate that does not change over the life of the loan.
What is a fixed-interest rate?
The comprehensive write-up lenders use to review your accounts, payment history, and public records.
What is your credit report?
Paying only this monthly amount on a credit card is not the best option because it adds the most interest.
What is the minumum payment?
A loan specifically used to purchase a home.
What is a mortgage?
The person who promises to pay your loan if you default.
Who is the cosigner?
An interest rate that may rise or fall with the economy.
What is a variable-interest rate?
The numeric rating that summarizes credit trustworthiness, usually between 300 and 850.
What is your credit score?
Name one action that will increase your credit score.
What is making payments on time, paying off debt, or maintaining a long credit history?
A loan that requires collateral the lender can take if you default.
What is a secured loan?
The charge you pay for borrowing money (expressed as a percentage).
What is interest?
For borrowers, it is better to have a _______ interest rate, because you end up paying less over time.
What is low?
The time between a purchase, your bill, and when interest is charged if you don’t pay in full.
What is the grace period?
Applying for many new credit accounts in a short time usually has this effect on your credit score.
What is decreasing your credit score?
A loan that has no collateral backing it.
What is an unsecured loan?
The length of time you have to repay a loan.
What is the term?
If you have a high credit score, you will pay ____ interest than someone with a low credit score.
What is less?
These three companies track and report your credit history.
(Name at least 2)
Who are Equifax, Experian, and TransUnion?
You find a 60‑day late mark on your report but have bank proof that you paid on time. The first people you should contact to correct the error are...
Who are the credit card companies?
Credit that you can use over and over again up to a set limit.
What is revolving credit?
The general phrase meaning “buy now, pay later.”
What is credit?
If you have a low credit score, you will pay ____ interest than someone with a high credit score.
What is more?
Negative items like missed payments typically remain on your credit report for this many years.
What is 7-10 years?
If you put down a security deposit on your secured credit card, it also becomes your _______ ________ for the month.
What is your credit limit?