Consumer Credit Vocabulary

Title Loan

• A type of unsecured loan with high interest rates.

• A secured loan where the borrower uses their vehicle title as collateral.

• A loan specifically for purchasing real estate.

• A personal loan that does not require any collateral.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Credit Reporting Agency

• Organizations that compile records on users of credit as to how well they repay their debts.

• Companies that provide loans to individuals and businesses.

• Agencies that regulate the interest rates of financial institutions.

• Organizations that offer financial advice and planning services.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Personal Loan

• An amount of money you borrow to use for a variety of reasons; these loans can be secured or unsecured depending on if collateral exists.

• A type of loan specifically for purchasing a home.

• A loan that is only available to individuals with excellent credit scores.

• A short-term loan with high interest rates for emergency expenses.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Student Loan

• A type of loan specifically designed to help students pay for post-secondary education.

• A loan that can only be used for purchasing a car.

• A type of loan for buying a house.

• A loan that is available only to graduate students.

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

Credit Limit

• The total amount of cash a borrower can withdraw from an ATM.

• The maximum amount of credit that a lender extends to a borrower.

• The minimum payment required on a credit card each month.

• The interest rate applied to a loan based on the borrower's credit score.

FICO Score/Credit Score

• A score that summarizes the probability that a debtor will pay a debt and is a reliable way that creditors judge creditworthiness.

• A measure of a person's income and savings.

• A rating that indicates the amount of debt a person has.

• A score that reflects a person's spending habits.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Debtor

• An organization or person who uses credit.

• A person who lends money.

• A financial institution that provides loans.

• A type of investment strategy.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Secured Loan

• A loan that requires some type of collateral as a condition of borrowing (e.g., mortgage, business loan, personal loan with collateral, car loan).

• A loan that does not require any collateral and is based solely on the borrower's creditworthiness.

• A type of loan that is only available to businesses and requires a detailed business plan.

• A loan that is secured by a government guarantee, ensuring repayment in case of default.

Unsecured Loan

• A loan that requires collateral to secure the amount borrowed.

• A loan that does not require collateral; lenders rely on the borrower's creditworthiness.

• A loan that is guaranteed by a third party.

• A loan that has a fixed interest rate and repayment schedule.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Credit Rating

• An assessment of the creditworthiness of a borrower, often expressed as a letter grade.

• A measure of a company's profitability over time.

• A score indicating the likelihood of a borrower defaulting on a loan.

• A ranking of stocks based on their market performance.

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4