Credit Vocabulary

The amount of money that the lender lends to the borrower is called the....

• principal

• down payment

• default

• collateral

Interest can be defined as:

• a charge for lending money

• the fee charged for borrowing money

• the amount added into your savings account when opening a bank account

• a charge for convenience of accessing money in your bank

APR stands for

• annual profit rate

• annual percentage rate

• annual participation rate

• annuity profit range

A sum paid or charged for the use of money

• interest
• time
• sales tax
• principal

What is a credit card?

• The ace of diamonds

• A large plastic card designed to ruin consumer's finances

• A small plastic card issued by the government attached to a line of credit

• A small plastic card issued by a bank and attached to a line of credit

What is a credit score?

• a number between 300 and 850 representing your creditworthiness

• a statistical number that evaluates a consumer's creditworthiness and is based on credit history.

• Often referred to as a FICO score

• All of the above

a number assigned to a person that indicates to lenders their capacity to repay a loan.

• Credit score

• Credit report

• Credit history

• Credit bureau

This card is tied to your checking account.

• Debit Card (DC)

• Credit Card (CC)

A bank account that allows you to deposit/withdraw money at any time and earns interest is a

• money market fund

• money market deposit account

• regular savings account

• certificate of deposit

A system that allows consumers to borrow money with the “promise” they are going to pay it back over time is...