Understanding Credit and Loans

Sophia received a new credit card and noticed a fee charged each year for having the card. What is this fee called?

• Late Payment Fee

• Annual Fees

• Finance Charge

• Minimum Payment

Emma is considering taking out a loan to buy a new car. She wants to understand the cost of borrowing money over a year, including interest and fees.

• Finance Charge

• Annual Percentage Rate (APR)

• Grace Period

• Sources of Credit

Aiden is looking to buy a new car and decides to take a loan. The loan is backed by the car itself, meaning if Aiden doesn’t pay, the lender can take the car.

• Unsecured Loan

• Collateral/Secured Loans

• Credit Approval

• Debt Repayment Loan

Henry wants to buy a new laptop but doesn't have enough money right now. He decides to borrow money from the bank and agrees to pay it back later. What is this ability to borrow money now and pay it back later called?

• Finance Charge

• Credit

• Debt Repayment Loan

• Default

When Charlotte applies for a credit card and the lender decides she qualifies for it.

• Variable vs. Fixed Credit

• Credit Approval

• Late Payment Fee

• Grace Period

Elijah wants to buy a new video game but doesn't have enough money right now. He decides to use a plastic or digital card that lets him borrow money to buy it, then pay it back later. What is he using?

• Pawn Shops

• Credit Card

• Sources of Credit

• Identity Theft

Ethan needed some quick cash for an emergency and decided to use his credit card to get it, even though it came with high fees and interest.

• Credit Card Cash Advance

• Minimum Payment

Mia received a notification from her bank that they have raised the limit on how much she can borrow on her credit card.

• Late Payment Fee

• Credit Increase

• Default

• Grace Period

Evelyn wants to apply for a loan and the bank asks for a record of her borrowing and payment history.

• Credit Report

• Credit Score

• Capital

• Default

Abigail and Ethan are discussing companies that collect and share credit information, such as Equifax, Experian, and TransUnion.

• Credit Reporting Bureaus

• Finance Charge

• Identity Theft

• Truth in Lending Act