Consumer Credit Vocabulary

Front

Credit Reporting Agency

Back

Organizations that compile records on users of credit as to how well they repay their debts.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

Personal Loan

Back

An amount of money you borrow to use for a variety of reasons; these loans can be secured or unsecured depending on if collateral exists.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

FICO Score/Credit Score

Back

A score that summarizes the probability that a debtor will pay a debt and is a reliable way that creditors judge creditworthiness.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Front

Debtor

Back

An organization or person who uses credit.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

Secured Loan

Back

A loan that requires some type of collateral as a condition of borrowing (e.g., mortgage, business loan, personal loan with collateral, car loan).

Front

Unsecured Loan

Back

A loan that does not require collateral; lenders rely on the borrower's creditworthiness.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

Credit Rating

Back

An assessment of the creditworthiness of a borrower, often expressed as a letter grade.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Front

Creditor

Back

An organization or person that extends credit to a debtor.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

Collateral

Back

An asset that a borrower offers to a lender to secure a loan.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Front

Creditworthiness

Back

A measure of a borrower's ability to repay a loan based on their credit history and financial situation.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4