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Credit Vocabulary

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Amount owed on a credit card or loan

a)

Balance

b)

Credit

c)

Interest

d)

Capacity

2.

the state of legally having been declared unable to pay off debts owed with available income

a)

Bankruptcy

b)

Debt

c)

Credit

d)

Credit Rights

3.

An arrangement to receive cash, goods, or services now and pay for them in the future.

a)

Credit

b)

Credit history

c)

Credit report

d)

Creditor

4.

company that collects information about your credit history and sells it to lenders

a)

Credit

b)

Creditor

c)

Credit Bureau

d)

Credit cards

5.

person or institution to whom money is owed

a)

Creditor

b)

Credit

c)

Balance

d)

Principal

6.

a detailed report of an individual's credit history

a)

Credit Report

b)

Credit Score

c)

Creditor

d)

Credit history

7.

a number assigned to a person that indicates to lenders their capacity to repay a loan.

a)

Credit score

b)

Credit report

c)

Credit history

d)

Credit bureau

8.

Failure to make minimum payment on time

a)

Delinquent

b)

Debt

c)

Credit

d)

Repossession

9.

A sum paid or charged for the use of money or for borrowing money

a)

Interest

b)

Principal

c)

Balance

d)

Debt

10.

The amount of money borrowed

a)

Principal

b)

Principle

c)

Creditor

d)

Credit

11.

The act of taking an asset used as collateral and selling it to pay the debt

a)

Repossession

b)

Delinquent

c)

Character

d)

Capacity

12.
Total dollar cost of credit is ?
a)
finance charge
b)
revolving accounts
c)
installment
d)
budget accounts
13.
A maximum amount of money may be owed at one time is ?
a)
credit limit
b)
credit cards
c)
credit loan
d)
trade credit
14.
A yearly fee associated with having a credit card is a separate fee from interest rate on purchases:
a)
origination fee
b)
annual fee
c)
APR
d)
none of these
15.
An amount of money borrowed by one party from another:
a)
revolving credit
b)
installment credit
c)
debt
d)
interest
16.
A charge for not paying a bill or loan by its due date:
a)
over the limit fee
b)
finance charge
c)
late fee
d)
origination fee
17.

A plastic card issued by a bank or business used to buy goods and services on credit.

a)

Credit Card

b)

Debit Card

c)

Prepaid Card

d)

Gift Card

18.
Current amount owed on a debt.
a)
Balance
b)
Principal
c)
Capital
d)
Dividend
19.
The time between the date a customer is billed and the date the payment is due when no interest is charged to your account.
a)
Grace period
b)
Minimum monthly payment
c)
30-day account
d)
20/10 Rule
20.

The process in which interest is earned on both the principal and on any previously earned interest.

(Note- this was a good thing for EARNING interest, but a bad thing for having to pay interest)

a)

Compound interest (compounding)

b)

Simple interest

c)

Minimum

d)

Complex

21.

The smallest amount that a borrower can pay on an amount owed and remain a borrower in good standing.

a)

Minimum monthly payment

b)

Full payment

c)

$50

d)

$10

22.
Agreeing to be responsible for another person's loan payments if that person fails to make them.
a)
Cosigning
b)
Signing
c)
Parternering
d)
Proprietorship