Understanding Credit

Front

__________ is a trust or promise to pay later for goods or services purchased today.

Back

Credit

Front

The cost of consumer credit expressed as a dollar amount including interest and service fees is known as ___________.

Back

finance charge

Front

The agreed length of a loan is a/an __________.

Back

loan term

Front

___________ is a liability or obligation in the form of bonds, loan notes, or mortgages owed to another person.

Back

Debt

Front

A yearly fee charged by credit grantors for the privilege of using a credit card is known as a/an ___________.

Back

annual fee

Front

___________ is when one becomes financially ruined.

Back

Bankruptcy

Front

A record of how one has paid credit accounts in the past is known as a ___________.

Back

credit history

Front

____________ is the cost of credit at a yearly rate.

Back

Annual percentage rate (APR)

Front

The ________ is a time frame in which a person can avoid finance charges by paying off a balance in full before its due date.

Back

grace period

Front

A/an _____________ is a record or file to a prospective lender or employer on the credit standing of a prospective borrower.

Back

credit report