Credit & Debt Basics

Front

My friend offered the bank his house as .... when he needed a loan.

Back

collateral

Front

The bank will take possession of your car if you .... your car loan.

Back

default on

Front

The amount of money that the lender lends to the borrower is called ....

Back

principal

Front

Loans for buying cars are called ....

Back

auto loans

Front

To make sure if the loan applicant always paid back the loans in the past, the bank will check the customer's...

Back

credit rating

Front

The first thing that the customer needs to do to take a loan is ....

Back

fill out the loan application

Front

Someone who will take over the loan for a borrower if the borrower fails to make payments is known as the _____________________.

Back

co-signer

Front

The bank adds the interest to the .... to calculate the monthly payment of your loan.

Back

principal

Front

A person has a lot of .... if he owes money to a lot of people.

Back

debts

Front

What did Mr. Fanelli and his wife NOT use the charge card for? Options: bought their furniture, bought tickets, bought airplane, went for vacation

Back

bought airplane