W!SE Vocabulary Part 1

Money owed to another person or company.

• Debt

• Default

• Lien

• Principal

Failure to pay back loans.

• Default

• Repossession

• Lien

• Collateral

3 C’s of Credit

• Character (credit history), Capacity (ability to repay), Capital (assets)

• Collateral, Credit Agency, Credit Cards

• CoPay, Claim, Cash Value

• Compound Interest, Capital Gain, Credit Score

Something of value that a borrower lets the lender claim if a loan is not repaid.

• Collateral

• Repossession

• Lien

• Principal

A credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of numbers ranging from 300 – 850.

• FICO Score

• APR

• Lien

• Principal

The rate of interest that is charged for using credit

• APR

• FICO Score

• Lien

• Principal

Equifax, Transunion, and Experian keep a record of consumer’s credit transactions. These are called. . . .

• Credit Reporting Agencies

• Debt Collectors

• Credit card agencies

• Finance Charges

The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation.

• Lien

• Finance Charge

• Repossession

• Payday Loan

a loan where a borrower gets cash advances based on his paycheck.

• Payday Loan

• Revolving Credit

• Installment Credit

• Collateralized Loan

the dollar amount you pay to use credit.

• Finance Charge

• Debt

• Principal

• Repossession