Chapter 16 Credit

A company that collects past-due bills for a fee.​ ​ (a)  

• collection agency
• credit risk
• credit score
• unsecured credit

The total amount paid by a borrower to a lender for the use of credit.​ (a)  

• finance charge
• credit risk
• credit score
• unsecured credit

The amount of money borrowed. ​ (a)  

• principal
• credit risk
• credit score
• unsecured credit

A numerical measure of a loan applicant’s creditworthiness at a particular point in time​ (a)  

• credit score
• credit risk
• unsecured credit
• credit policy

A record of credit history and fi​nancial behavior for a business or individual.​ (a)  

• credit report
• credit risk
• unsecured credit
• credit policy

An agreement between two parties in which one party lends money or provides goods or services to another party with the understanding that payment will be made at a later date​ (a)  

• credit
• credit risk
• unsecured credit
• credit policy

Credit granted based on a signed credit agreement. (a)  

• unsecured credit
• credit risk
• credit policy
• principal
• finance charge

The potential of credit not being repaid.​ (a)  

• credit risk
• unsecured credit
• credit policy
• creditor

The party extending credit. (a)  

• creditor
• credit risk
• unsecured credit
• credit policy

A written set of guidelines used by an organization to determine how many and which customers will be approved for credit.​ (a)  

• credit policy
• credit risk
• unsecured credit
• collection agency