Credit Vocabulary TEST

What are the 3 major credit bureaus?

What is the term for a bank charge for use of a credit card levied each year, which is billed directly to the customer's monthly statement?

• Annual Fee

• Late Payment Fee

• Cash Advance Fee

• Balance Transfer Fee

The interest rate reflecting the total yearly cost of the interest on a loan.

• Annual Fee

• Annual Percentage Rate

• Advanced Rate

• Balance Rate

Any person to whom you give permission to use a credit card account.

A legal inability or impairment of ability of an individual or organization to pay its creditors.

The period that your charges are applied to your credit card. This is also the period used to calculate your balances and monthly finance charge.

• billing period

• grace period

• finance period

• charge-back period

What does 'capital' refer to in finance?

• Value of what you own including savings, investments and property.

• The total amount of money you owe to others.

• The interest earned on your bank account.

• The annual income from your job.

What is a cash advance?

• Using your credit card to obtain cash at an ATM.

• Paying your credit card bill in full.

• Transferring money from your savings to checking account.

• Depositing a check at the bank.

Enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

• Chapter 7 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 9 Bankruptcy

A trustee is appointed to liquidate (sell) the company's (or individuals) assets. The proceeds are used to pay off the debts, and then the remaining debt is discharged.

• Chapter 7 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 9 Bankruptcy