Font size
WorksheetsCredit: What and Why
Total questions: 24
Worksheet time: 12mins
What is credit
Using someone else's money
Charging something
Using someone else's money, borrowed now with the agreement to pay it back later
What phased out, causing the need for credit
Farming
Bartering and trading
Currency exchange
Printing of paper money
What was the oldest form of credit
Account at the General Store
JcPenney and Belk
Checking Account
IRA
What increased as credit expanded
Credit scores
Individual purchasing power
Group sales
Value of corporations
When did people begin declaring bankruptcy
1920
1950
1970
1990
When did buying on credit become the American way of life
1920 - 1940
1920 - 1960
1920 - 1990
1975 - 1998
What transaction are hard to make without a credit card?
Reserving a hotel, renting a card
Renting a home, buying groceries
Reserving a hotel, renting a car, making online purchase
What is the average amount of debt among Americans
$2,500
$3,500
$5,000
$10,000
What technique results in increasing credit card debit
Robbing Mary to pay Bob
Robbing Paul to pay Peter
Robbing Peter to pay Paul
Robbing Sally to pay Jane
Who borrows money from others
Borrower
Broke folks
Debtor
Creditor
What is borrowed money that must be repaid (in any form)
Credit
Debt
Loan
Bill
Person or business that loans money to others
Credit card
Credit card companies
Creditor
Debtor
Qualification for credit are based on what
income, financial position and collateral
Income and collateral
Financial position and income
Income, status and collateral
What is capital
Value of property you possess
Value of property you own minus your debts
Total of your credits
Accumulated assets
Property pledged to assure repayment of a loan
Income
Assets
Collateral
Principal
What happens if you use collateral and do not repay a loan
Collateral agreement is void
Collateral is seized
Collateral remains in your possession
What is the amount borrowed
Principal
Loan
Balance
What is balance due (Loan or credit card)
Principal plus interest
Principal minus interest
Interest only
Principal only
Total dollar amount of all interest and fees paid for the use of credit
Balance due
Annual Percentage Rate
Finance Charge
Least amount you can pay monthly
Monthly payment
Minimum payment
Installment payment
Revolving payment
Preestablished amount that can be borrowed on demand with no collateral
Loan
Pay day Loan
Installment Loan
Line of Credit
Service available at no charge to customers whereby purchase are not billed until much later
Late payment
Deferred billing
Installments
What is a disadvantage of credit
Can cost you more than a cash purchase
Fees are cheapers
It increases income
It ties up future income
What can buying on credit lead to...
Having to much stuff
Overspending
High debts
Good Credit scores
