SSEPF4 Credit Worthiness

The amount you pay to use someone else's money. It is also the amount of money you earn when allowing others to use your money.

• Interest
• Late Payment Fee
• Line of Credit
• Minimum Payment

The original amount of money borrowed

• Principal
• Credit History
• Annual Percentage Rate (APR)
• Interest

One of the 3 C's of credit that shows a person's willingness to pay is

• capital

• collateral

• character

• capacity

One of the 3 C's of credit that refers to property that secures the loan is

• capital

• collateral

• character

• capacity

Quizizz 3) One of the 3 C's of credit that shows one's ability to pay is

• capital
• collateral
• character
• capacity

Quizizz 6) The amount credit costs, expressed as a yearly percentage.

• periodic rate
• APR
• finance charge
• previous balance

A person has three credit cards is unable to make payments on any of them. Which action should the person take?

• Notify the credit card companies in order to negotiate a new payment plan.

• Cut up the card, put parts in different garbage bags,

• It is irresponsible use of credit because his current income is too low

Sharon is 20 years old. She has one gas, two bank, and two department store credit cards. Her application for another credit card has been declined. The probable reason is:

• The total amount she can charge on her cards is more than her ability to repay

• she pays the complete balance each month.

• She is extremely careful about disclosing account information to unsolicited callers.

Dawn graduated from high school and wants to get a credit card. How can Dawn establish credit-worthiness?

• Opening a checking account, making regular deposits, and avoiding penalties for insufficient funds

• Be extremely careful about disclosing account information

• The Truth in Lending Act of 1968

A measure of a person's ability and willingness to pay debts on time. 

• credit rating (score)
• collateral 
• credit limit