Managing Credit Vocabulary

What is Bankruptcy?

• A financial situation where an individual or entity cannot repay their debts

• A type of investment strategy

• A method of saving money

• A form of insurance

Chapter 7 Bankruptcy is a type of bankruptcy that involves what?

• Liquidation of assets

• Reorganization of debts

• Debt consolidation

• Credit counseling

Chapter 13 Bankruptcy is a type of bankruptcy that allows individuals to do what?

• Discharge all debts without repayment

• Repay debts over a period of time

• Sell all assets to pay off debts

• Avoid paying any debts

What is a Charge-Off?

• A charge-off is a declaration by a creditor that an amount of debt is unlikely to be collected.

• A charge-off is a type of loan that is forgiven by the lender.

• A charge-off is a fee charged by banks for overdrawing an account.

• A charge-off is a penalty for late payment on a credit card.

What are Collections in credit terms?

• A type of loan

• A process of recovering overdue debts

• A credit score evaluation

• A financial investment strategy

The Consumer Financial Protection Bureau (CFPB) is:

• a government agency that ensures banks, lenders, and other financial companies treat consumers fairly.

• a private organization that provides financial advice to consumers.

• a non-profit organization that offers financial education programs.

• a department within the Federal Reserve that manages monetary policy.

What is Credit?

• A financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date.

• A type of investment in the stock market.

• A method of saving money for future use.

• A government policy for economic growth.

What is a Credit Bureau?

• A financial institution that provides loans

• An agency that collects and maintains credit information

• A government body that regulates banks

• A company that offers investment advice

A Credit Counselor is:

• a professional who helps individuals manage their debt and improve their financial situation.

• a person who provides legal advice on credit-related issues.

• an individual who offers investment strategies and stock market tips.

• a financial advisor specializing in retirement planning.

Credit history is a record of a borrower's responsible repayment of debts. What does it represent?

• A record of a borrower's responsible repayment of debts

• A list of all bank accounts

• A summary of monthly expenses

• A report of annual income