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NGPF Managing Credit Vocabulary

Authored by Anasia Napper

Business

10th Grade

Used 5+ times

NGPF Managing Credit Vocabulary
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8 questions

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1.

MATCH QUESTION

1 min • 5 pts

Match the following

Annual Percentage Rate (APR)

How much you owe each creditor individually and in total; 30% of your credit score is based on this

Bankruptcy

The cost you pay each year to borrow money, including fees, expressed as a percentage

Authorized User

A legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment

Amounts Owed

A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill

Charge-Off

A declaration by a creditor (usually a credit card account) that an amount of debt is unlikely to be collected; occurs when a consumer becomes severely delinquent on a debt

2.

MATCH QUESTION

1 min • 5 pts

Match the following

Collections

A U.S. government agency that helps protect consumers by regulating financial products and services, like mortgages, credit cards, and student loans

Credit

An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest

Credit Counselor

A consumer-reporting company that collects and sells information about how individual people manage their credit (e.g. Equifax)

Credit Bureau

An attempted recovery of a past-due credit obligation or debt by a collection department or agency

Consumer Financial Protection Bureau

A certified financial advisor who works for an accredited nonprofit specializing in helping consumers repay debt in a responsible manner

3.

MATCH QUESTION

1 min • 4 pts

Match the following

Credit History

A document with information about a person’s credit activity and history

Credit Score

A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report

Credit Report

A record of a person's use of credit over time; 15% of your credit score is based on the length of your credit history

Credit Utilization Rate

A measurement of your outstanding debt divided by your total available credit; a general rule of thumb is to keep this under 30%

4.

MATCH QUESTION

1 min • 4 pts

Match the following

Debt

An agreement made between a creditor and a consumer in which the total debt balance owed is reduced and/or fees are waived, and the reduced debt amount is paid in a lump sum instead of revolving monthly

Debt Snowball Method

A detailed plan drawn up by a debt management company (DMC) and sent to an individual's creditors (entities they owe money). It groups several credit card debts into one payment, cuts your interest rate and creates a 3- to 5-year repayment plan.

Debt Management Plan

A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first

Debt Settlement

Something, typically money, that you owe to a person or a business

5.

MATCH QUESTION

1 min • 5 pts

Match the following

Fair Credit Reporting Act

A federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files

Emergency Fund

A law that protects consumers from discrimination in the granting or denying of credit

Equal Credit Opportunity Act

Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score

Federal Trade Commission (FTC)

Money set aside for unanticipated expenses or loss of income

Default

A government organization whose role is to protect consumers and competition by preventing anti-competitive, deceptive, and unfair business practices through law enforcement, advocacy, and education

6.

MATCH QUESTION

1 min • 5 pts

Match the following

Foreclosure

The rate charged for borrowing money usually expressed as a percent of the amount borrowed

FICO Score

A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first

Hard Inquiry

An inquiry into your credit history, typically in advance of applying for a loan. Hard inquiries can negatively affect your credit for 12 months and remain on your credit history for two years.

High Rate Method

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the property

Interest Rate

The most commonly used credit score

7.

MATCH QUESTION

1 min • 5 pts

Match the following

Payment History

A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called wealth

Lawsuit

The number of recently opened credit accounts and all new credit inquiries; 10% of your credit score is based on this

New Credit

A history of the payments you have made on all credit you have obtained; 35% of your credit score is based on this

Net Worth

The taking back of property after a borrower has defaulted on payments

Repossession

A civil legal action by one person or entity (the "plaintiff") against another person or entity (the "defendant"), to be decided in a court

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