Unit 6 - Credit & Debt Management

A loan backed by collateral

• Unsecured Loan

• Secured Loan

Which of the 3 C's of Credit relates to whether or not you can afford to repay the loan (how much money you have)

• Capital

• Character

• Capacity

An example of open end credit is

• Mortgage Loan

• Auto Loan

• Credit Card

• Debit Card

The total amount you pay to use credit (all the interest and fees)

• Finance Charge

• Line of Credit

• Principal

• Grace Period

Type of bankruptcy where most assets are sold off but most of your debt is forgiven

• Chapter 13

• Chapter 7

An entity that lends money

• Landlord

• Shark

• Debtor

• Creditor

Type of bankruptcy where the debtor gets to keep their belongings, but income is garnished

• Chapter 7

• Chapter 13

Maximum amount of money a creditor will allow a credit user to borrow

• Line of credit

• Collateral

• Interest

• Grace Period

Which of the 3 C's of Credit relates to willingness and reliability to repay a debt. Do you pay your bills on time.

• Character

• Capital

• Capacity

Which of the following is not one of the three credit bureaus

• Equifax

• Better Credit Bureau

• TransUnion

• Experian