Credit Vocab Review

The process of paying off a debt in regular installments over a period of time is known as _____.

• Amortization

• Annual Fee

• Annual Percentage Rate

• Authorized User

The smallest amount you can pay each month to keep your credit card in good standing is called the _____. However, it's recommended that you pay your balance in full each month.

• Lease

• Loan

• Minimum Payment

• Mortgage

Amanda has taken out a(n) _____, which has an interest rate that changes based on the market. As a result, her monthly payments may change.

• Small Business Loan

• Term

• Unsecured Debt

• Variable-Rate Loan

A car loan is an example of _____, where the loan is backed by collateral. If payments are not made, the lender can seize the car itself.

• Schumer Box

• Secured Credit Card

• Secured Debt

• Small Business Loan

The _____ is the amount you are charged to borrow money.

• Installment Loan

• Interest

• Interest Rate

• Late Payment Fee

To purchase their first home, the Thompsons took out a(n) _____.

• Lease

• Mortgage

• Payday Loan

• Peer-to-Peer Lending

The _____ is how long you have to pay the money back, with interest, to the lender.

• Small Business Loan

• Term

• Unsecured Debt

• Variable-Rate Loan

The maximum amount of money that can be charged to a credit card is known as the _____.

• Collateral

• Cosigner

• Credit Card

• Credit Limit

When buying a new car, Michael was required to pay 20% of the car's price upfront as a(n) _____, reducing the amount he needed to borrow.

• Debit Card

• Down Payment

• Fixed-Rate Loan

• Grace Period

A(n) _____ is often considered a risky option for emergency cash because it needs to be repaid by your next paycheck and has a high interest rate.

• Mortgage

• Peer-to-Peer Lending

• Payday Loan

• Prepaid Debit Card