Credit 1 - What is Credit?

Front

What is credit?

Back

Borrowed money

Front

Revolving credit is...

Back

a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.

Front

If the collateral for your secured loan can be taken away, why get a secured loan at all?

Back

Because they usually have a lower interest rate.

Front

A loan which the borrower must repay the amount in a specified number of equal payments.

Back

Closed‐end credit

Front

A line of credit established in advance so the borrower does not have to apply for credit each time new credit is desired.

Back

Open‐end credit

Front

An example of closed‐end credit is a secure credit card.

Back

False

Front

An unsecured loan is backed by collateral.

Back

False

Front

What must you have in order to get a home equity loan? (Options: Car, House, College Education, A dog)

Back

House

Front

What is the term for the person who will sign a loan document with you to help you obtain credit?

Back

Cosigner

Front

A simple definition of credit could be stated as...

Back

Buy now, pay later