Vocab Credit

Making purchases now and paying for them later

• credit

• rent to own

• pawn loan

• interest

Interest

• The amount you can borrow on a card

• The amount you pay for borrowing money

• The original amount you borrow on a loan

• charge if payment is late

The one that lends money?

• creditor

• debitor

• principal

It is ok to use credit to purchase a home or car.

• True

• False

When you have poor credit it is still easy to get loans.

• True

• False

A person with poor or little credit will have a higher interest rate.

• True

• False

The maximum amount that you can use on a credit card.

• credit fee

• credit sources

• credit limit

• credit availability

How many C's of credit are there?

• 2

• 3

• 4

• 5

• 6

Which of these are NOT a benefit to using savings instead of credit?

• NO interest

• NO Fees

• good credit built

• No monthly bill

A short-term loan that provides immediate cash by securing a borrower's written check high interest.

• Rent to own

• title loan

• pawn loan

• payday loan