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WorksheetsCredit Vocabulary
Total questions: 21
Worksheet time: 33mins
The amount of money that the lender lends to the borrower is called the....
principal
down payment
default
collateral
Interest can be defined as:
a charge for lending money
the fee charged for borrowing money
the amount added into your savings account when opening a bank account
a charge for convenience of accessing money in your bank
APR stands for
annual profit rate
annual percentage rate
annual participation rate
annuity profit range
What is a credit card?
The ace of diamonds
A large plastic card designed to ruin consumer's finances
A small plastic card issued by the government attached to a line of credit
A small plastic card issued by a bank and attached to a line of credit
What is a credit score?
a number between 300 and 850 representing your creditworthiness
a statistical number that evaluates a consumer's creditworthiness and is based on credit history.
Often referred to as a FICO score
All of the above
a number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score
Credit report
Credit history
Credit bureau
This card is tied to your checking account.
Debit Card (DC)
Credit Card (CC)
A bank account that allows you to deposit/withdraw money at any time and earns interest is a
money market fund
money market deposit account
regular savings account
certificate of deposit
A system that allows consumers to borrow money with the “promise” they are going to pay it back over time is...
(a)
What is a Co-Signer?
if you default on your payments your co-signer is responsible for the payments.
not being able to make a payment or payments.
Stays the same throughout the duration of the loan term. Predictable with higher interest rates.
Can fluctuate depending on the index. Unpredictable with lower interest rates.
a way to pay back a long over a specific period of time
debt
repayment plan
credit
account
a sum of money that is borrowed and must be paid back, possibly with interest
savings account
credit card
loan
