Understanding Credit

_____________the ability to borrow money or access goods or services with the understanding that you'll pay later.

• credit

• credit rating

• credit score

• credit report

All of the following are advantages of credit except

• Borrowers have the option of buying something today and paying the money back over time.

• Borrowers can use a product or service while paying for it

• Borrowers are likely to spend more money usnig credt than thet would if they were paying with cash.

• Borrowers have flexibility with major purchases that might require more money than you have on hand.

With____________ credit, the borrower is given a maximum borrowing limit and you can make charges up to that limit.

• secured

• installment

• revolving

• service

With _________________credit is a loan for a specific sum of money you agree to repay, plus interest and fees, in a series of equal monthly payments over a set period of time.

• secured

• installment

• revolving

• service

A_____________ is report that shows the credit accounts a borrower has, payment history, balances, and other key information that reflects the borrower's borrowing habits.

• credit rating

• credit report

• credit score

Which is not a factor that is used to determine credit score?

• payment history

• type of credit

• public records

• amount of money in savings

The 3 C's of credit are

• character, capacity, and capital

• capital, capacity, credibility

• character, capacity, charisma

• capacity, competency, character

To stay on top of your credit you need to

• obtain a credit report

• obtain your credit score

• dispute errors on your credit report

• all of the above

____________is the borrower's earning power and employment history.

• Capital

• Capacity

• Character

• Credit

_________________extend credit to consumers under the assumption that the consumer can pay back what was borrowed along with any finance charges that may apply

• Borrowers

• Creditors

• Consumers

• Collector