Financial Literacy Chapter 8

Front

Statement in a contract that allows the creditor to require full and immediate payment if the payment is missed or the individual fails to abide by the terms of the contract.

Back

Acceleration clause

Front

Creditor’s evaluation of an applicant’s willingness and ability to pay debts and most commonly expressed as a letter grade.

Back

Credit rating

Front

Person who owes money.

Back

Debtor

Front

An open-ended credit agreement that offers alternative payment arrangements is a(n) ____.

Back

Revolving credit

Front

_____ is a policy of making loans that are unlikely to be repaid.

Back

Subprime lending

Front

The purpose of credit is to serve as a(n) _____ that allows people to buy goods or services and pay for them at a later time.

Back

Financial tool

Front

A(n) _____ is a preapproved maximum amount that an individual can borrow.

Back

Credit limit

Front

The three Cs of credit are _____, _____, and _____.

Back

Character, Capacity, Capital

Front

An organization that collects information about the financial and credit transactions of consumers is a(n) _____?

Back

Credit bureau

Front

The total cost of using credit is the _____?

Back

Finance charge