Credit Units Test

Any arrangement where you get "stuff" (money, goods, services), and agree to pay for it in the future

• Down Payment

• Credit

• Annual Fee

• Co-signer

An agreement where you are credited with a fixed amount (usually of money) for a fixed period of time, usually with interest

• Principal

• Secured Credit Card

• Penalty Annual Purchase Rate (APR)

• Loan

The percentage charged for the privilege of borrowing money

• Credit Card

• Credit Limit

• Credit

• Interest Rate

The amount you borrow

• Credit Limit
• Collateral

• Term

• Principal

The amount of time you have to repay your principal

• Collateral

• Term

• Principal

• Credit

Something valuable that the lender can take as payment if you can't pay back your loan (like a house or car)

• Collateral

• Credit Card Statement

• Annual Fee

• Fixed-rate loan

Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made is known as:

• Credit Card

• Secured debt

• Debit Card

• Payday loan

Debt NOT tied to a specific asset or that cannot be repossessed if payments are not made is known as:

• Unsecured debt

• Annual Fee

• Debit Card

• Secured Credit Card

Interest rate can change over the course of the loan based on the overall economic environment in a:

• Schumer Box

• Credit

• Fixed-rate loan

• Variable-rate loan

The paying off of debt with a fixed repayment schedule in regular installments over a period of time is known as:

• Casting

• Amortization

• Introductory APR

• Compounding