Introduction to Credit

A person who needs the funds and borrows the funds through a bank.

What is borrowed money that you can use to purchase goods and services when you need them.

• Debit

• Loan

• Credit

To build a good credit history, you should

• open as much credit as possible quickly

• use the maximum credit allowed on all your credit cards

• pay on time and as much of your balance as possible

• all of these

A fee paid by a borrower to the lender for the use of borrowed money.

• bills

• interest

A debt evidenced by a "note," which specifies the principal amount, interest rate and date of repayment

• bank fee

• loan

An obligation of repayment owed by one party to a second party

• debt

• ownership

An interest rate is? 

• A low interest rate offered for a limited time by a company. 
• The yearly percentage rate of the finance charge. 
• The amount of interest charged to an account for the billing cycle. 
• The money you gain after paying your bills.

What can you buy or get with a good credit score?

• House 
• Car
• Loan
• All of the above 

When using credit, the purchase amount becomes what once the payment agreement is made?

• Loan

• Debt

• Mortgage

• IOU

Credit allows for purchases without cash.

• True

• False