Late or missed payments to credit card companies ___ your credit rating.

• Do not affect

• Limit

• Lower

• Raise

When businesses borrow money, they often pass along the cost of interest to consumers in the form of ___.

• Finance charges

• Higher prices

• Interest and fees

• Lower wages

Something of value the bank can take if a borrower does not make the required loan payments is called ___.

• Capacity

• Security

• Collateral

• Warrant

A ___ advance is a loan given in cash by a credit card company in anticipation of the borrower's being able to repay it.

• Cash

• Payday

• Quick

• Trust

The loan applicant's ability to repay the loan is called ___.

• Capacity

• Capital

• Cash on hand

• Collateral

Proof of a loan applicant's trustworthiness to repay debts is called ___.

• Cash on hand

• Character

• Competence

• Correctness

The amount of money the applicant has beyond his or her debts is called ___.

• Capacity

• Capital

• Cash on hand

• Collateral

If a person pays his or her bills on time, most creditors will raise the person's ___.

• Annual fee

• Credit limit

• Interest rate

• Minimum payment

The minimum payment is the amount a credit cardholder ___.

• Actually pays each month

• Can afford to pay

• Has a legal obligation to pay

• Plans to pay

An interest rate that fluctuates or changes is called a(n) ___ rate.

• Elastic

• Unrestricted

• Flexible

• Variable