Chapter 4

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan

• Depreciation

• Annual Fee

• Loan Term

• Debt Snowball

• Annual Percentage Rate

A decrease or loss in value

• Loan Term

• Debt Snowball

• Depreciation

• Annual Fee

• Credit Score

A detailed report of an individual’s credit history

• Credit Report

• Credit Score

• Credit Card

• Loan Term

• Annual Percentage Rate

Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term

• Annual Percentage Rate

• Debt Snowball

• Annual Fee

• Loan Term

• Credit Report

Type of card issued by a bank that allows users to finance a purchase

• Loan

• Annual Fee

• Credit Card

• Credit Score

• Annual Percentage Rate

A measure of an individual’s credit risk;calculated from a credit report using a standardized formula

• Credit Score

• Annual Percentage Rate

• Credit Report

• Credit Card

• Loan Term

A yearly fee that’s charged by the credit card company for the convenience of the credit card

• Annual Percentage Rate

• Annual Fee

• Credit Card

• Depreciation

• Credit Score

Preferred method of debt repayment;includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments

• Credit Report

• Minimum Payment

• Annual Fee

• Debt Snowball

• Depreciation

You must establish credit in order to buy a house

• True

• False

If you are a victim of identity theft, you are only responsible for paying back half of the debt.

• True

• False