Credit Vocabulary

What is an Annual Fee in terms of credit cards?

• The method of buying goods and services and paying for them later.

• A bank charge for using a credit card charged annually, billed directly on the customer's statement.

• A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.

• The period during which charges are applied to your credit card.

What does Annual Percentage Rate (APR) mean?

• The maximum amount of debt a buyer can carry.

• A document requesting credit approval that provides personal, financial, and employment information.

• The interest rate that reflects the total annual cost of interest on a loan, expressed as a percentage.

• An assessment by a creditor or credit bureau to reflect a debtor's past credit history based on their payment pattern.

What is an Authorized User in the context of credit card accounts?

• A person who is given permission to use a credit card account.

• A person who co-signs a loan and assumes equal legal responsibility for the debt.

• The property or tangible assets used as security to obtain a loan.

• The period used to calculate the balances and monthly finance charge on your credit card.

What is Bankruptcy?

• What is Bankruptcy?

• The legal inability or impairment of an individual or organization to pay its creditors.

• A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.

• The maximum amount of debt a buyer can carry.

What is a Cash Advance?

• Using your credit card to get cash from an ATM.

• A bank charge for using a credit card charged annually.

• A document requesting credit approval providing personal, financial, and employment information.

• An evaluation by a creditor or credit bureau to reflect a debtor's past credit history.

What is considered as Collateral?

• The maximum amount of debt a buyer can carry.

• The property or tangible assets used as security to obtain a loan.

• A method of buying goods and services now and paying for them later.

• A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.

What is a Cosigner?

• A person who signs a loan and assumes equal legal responsibility for the debt.

• A person who is given permission to use a credit card account.

• The property or tangible assets used as security to obtain a loan.

• The period used to calculate the balances and monthly finance charge on your credit card.

What is Credit?

• The maximum amount of debt a buyer can carry.

• A method of buying goods and services now and paying for them later.

• A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.

• Property or tangible assets used as security to obtain a loan.

What is a Credit Application?

• A method of buying goods and services now and paying for them later.

• A document requesting credit approval that provides personal, financial, and employment information.

• The maximum amount of debt a buyer can carry.

• The property or tangible assets used as security to obtain a loan.

What is a Credit Bureau?

• An agency that collects and sells information about how people handle credit.

• A method of buying goods and services now and paying for them later.

• The maximum amount of debt a buyer can carry.

• A document that requests credit approval providing personal, financial, and employment information.