Credit, Loans, & Credit Scores

The original amount borrowed (or saved)

• Principal

• Interest

• Down Payment

• Term

The cost of borrowing money is...

• Principal

• Interest

• Down Payment

• Term

Credit is an agreement between a lender & a borrower where one party lends money, goods, or services to another. Payment is made later. Oftentimes, interest is charged.

• True

• False

Another word for 'lender' is

• borrower

• creditor

• debtor

You have a car loan. Your car title has the bank's name on it because there's a

• default

• foreclosure

• lien

• term

Which of these may run a credit check before agreeing to do business with you?

• landlord

• utility company

• bank or credit union

• all of these

Which of these is NOT a credit bureau?

• Fair Isaac Corp.

• Experian

• Equifax

• TransUnion

Of these three, which is the best credit score:

• 585

• 750

• 800

Paying your bills on time & _____ contributes the most to your FICO score.

• how much debt you have

• how old you are

• where you live

• how many credit cards you have

An asset that can be taken if you default on your loan is

• principal

• collateral

• cosigner

• default