Debt, Interest, and Credit

Define "revolving accounts."

• Something used as security for repayment of the debt

• Loans you pay a fixed amount over a period of time

• Loans that allows you to repeatedly borrow money up to a specified credit limit

• The amount of money borrowed (from a bank or financial institution)

Define "collateral."

• Something used as security for repayment of the debt

• Loans you pay a fixed amount over a period of time

• Loans that allows you to repeatedly borrow money up to a specified credit limit

• The amount of money borrowed (from a bank or financial institution)

Define "installment accounts."

• Something used as security for repayment of the debt

• Loans you pay a fixed amount over a period of time

• Loans that allows you to repeatedly borrow money up to a specified credit limit

• The amount of money borrowed (from a bank or financial institution)

Define "principal."

• Something used as security for repayment of the debt

• Loans you pay a fixed amount over a period of time

• Loans that allows you to repeatedly borrow money up to a specified credit limit

• The amount of money borrowed (from a bank or financial institution)

When using the snowball method, which loan do you pay off first?

When using the avalenche method, which loan do you pay off first?

With the FICO Score calculation, what factor has the biggest impact on your credit score?

With the VantageScore calculation, what factor has the biggest impact on your credit score?

True or False: Debit cards DO NOT affect your credit score.

• True

• False

True or False: A credit card is a type of mortgage.

• True

• False