Credit and Debt Key Terms

___________ is an asset that increases in value over time

• Appreciating

• Installment

• Credit

What is collateral?

• Something you own that has value, that you offer as security on a debt.

  If the debt isn't paid the item is forfeited : (

• A statistical number used to represent a consumer's creditworthiness.

• The loss of value of an asset over time.

What is the name of the company that collects credit rating information and makes it available to creditors?

• Credit Bureau

• Predatory Lender

• Installment Equity

What is a credit score?

• The number used to represent a consumer's creditworthiness

• The money owed to another person or company

• The loss of value of an asset over time.

Money owed to another person or company is called ______.

• Default

• Debt

• Equity

What does default mean?

• The failure to repay a loan on time.

• The additional cost a lender charges for borrowing their money.

• The loss of value of an asset over time

An ​ ​ (a)   that loses value over time, such as a car that's worth ​ (b)   every year is called a (c)   asset

• asset
• depreciating
• less

What is the loss of value of an asset over time called?

• Depreciation

• Equity

• Interest

​ (a)   is the increase in ​ (b)   of a a home over time; the ​ (c)   between the amount ​ (d)   and what the home could be sold for.

• Equity
• value
• difference
• owed
• debt
• cost
• profit

Installement credit is a loan for a fixed amount of money that's paid back in monthly installments.

• TRUE

• FALSE