Credit and Credit Management Test

Front

________ is the use of someone else's money, borrowed now with the agreement to pay it back later.

Back

Credit

Front

A written statement of a consumer’s credit history, detailing loans, payment info, late payments, and personal information:

Back

Credit Report

Front

A legal process that allows part of your paycheck to be withheld for payment of a debt:

Back

Garnishment

Front

How do you avoid paying interest on your credit card (or any other loan for that matter)?

Back

Always make the full payment on time

Front

All are negative aspects of bankruptcy except?

Back

most of your debt is excused

Front

The debt reduction method that you pay off the smallest loans first, which can be motivating because you will have fewer sources of debt.

Back

Debt snowball

Front

The amount borrowed is known as the ____.

Back

Principal

Front

The amount of time you are given to pay your bill without penalty is known as _____?

Back

Grace period

Front

A loan for which the borrower pledges property to ensure repayment is a(n) ____

Back

Secured loan

Front

Collateral is ____.

Back

Assets pledged to assure repayment of a loan