credit

Property used as security is ?

• a promissory note
• down payment
• collateral
• savings

Someone who promises to pay if the borrower fails to pay

• Character

• Cosigner

• Subscriber

• Not this one

A(n) ______ _______ is a loan repaid in equal payments over a specified period of time

• installment loan

• single payment loan

• revolving loan

Secured loans are less costly than unsecured loans because _________.

• They usually have a lower interest rate.

• They require collateral.

• They are less risky for the financial institution.

• All of the above

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

• it requires collateral.

• the loan takes longer to get.

• it has high interest rates.

• your parents will make sure you pay it back.

the amount that a borrower gets from a lender as a loan

• cosigner

• principal

• down payment

• finance charge

• collateral

Authorized user

• A person who shares the cards for the account, as well as the responsibility

• A person who signs up for the responsibility of the card/loan debt, even without a card or money from loan

• someone adds you as an authorized user on their credit card to help boost your credit

• a person who is allowed to use another person’s credit card, but they are not responsible or the debt.

As a young adult, all of the following are good strategies for building credit, EXCEPT:

• Open a credit card, with your parent or guardian as a cosigner

• Open a checking account, and start using a debit card

• Become an authorized user on a credit card used by your parent or guardian

• Open and use a secured credit card

What would an Auto Loan be classified as ?

• Installment
• Revolving

What is the main feature of unsecured debt?

• It is backed by collateral

• It has a fixed repayment schedule

• It has a lower credit limit

• It does not require collateral