Credit Vocabulary

What is the term used for an arrangement to receive cash, goods, or services now and pay for them in the future?

• loan

• credit

• interest

• principal

What does the term "interest" refer to in credit vocabulary?

• The original amount of money borrowed

• A type of open credit agreement

• additional money paid for the use of someone else's money

• The maximum amount that may be borrowed on a credit card

What is a "principal" in the context of borrowing money?

• A measure of consumer credit risk

• The rate charged for borrowing money

• The original amount of money borrowed

• A fixed or limited period for which something lasts

What is a "loan"?

• A yearly fee that may be charged for having a credit card

• A thing that is borrowed, expected to be paid back with interest

• An arrangement to receive services and pay later

• A fixed amount of money as collateral for a credit card

What does "term" refer to in credit vocabulary?

• The rate charged for borrowing money

• A fixed or limited period for which something lasts

• The maximum amount that may be borrowed on a credit card

• Money paid regularly for the use of money lent

What is a "credit card"?

• A type of loan

• A measure of consumer credit risk

• A card that allows purchases with borrowed money to be paid back later with interest

• A fixed, up-front amount of money as collateral

Credit limit

• is the original amount of money borrowed

• is the rate charged for borrowing money

• is the maximum amount that may be borrowed on a credit card

• is a yearly fee that may be charged for having a credit card

What is an "annual fee" in the context of credit cards?

• A measure of consumer credit risk

• A fixed or limited period for which something lasts

• A type of open credit agreement

• A yearly fee that may be charged for having a credit card

What does "interest rate" refer to?

• The rate at which credit card balance revolves

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

• The original amount of money borrowed

• The maximum amount that may be borrowed on a credit card

What is a "FICO score"?

• A yearly fee for having a credit card

• A type of open credit agreement

• A measure of a consumer's credit risk

• The maximum amount that may be borrowed on a credit card