WorksheetsCredit Vocabulary
Total questions: 25
Worksheet time: 13mins
What is the term used for an arrangement to receive cash, goods, or services now and pay for them in the future?
loan
credit
interest
principal
What does the term "interest" refer to in credit vocabulary?
The original amount of money borrowed
A type of open credit agreement
additional money paid for the use of someone else's money
The maximum amount that may be borrowed on a credit card
What is a "principal" in the context of borrowing money?
A measure of consumer credit risk
The rate charged for borrowing money
The original amount of money borrowed
A fixed or limited period for which something lasts
What is a "loan"?
A yearly fee that may be charged for having a credit card
A thing that is borrowed, expected to be paid back with interest
An arrangement to receive services and pay later
A fixed amount of money as collateral for a credit card
What does "term" refer to in credit vocabulary?
The rate charged for borrowing money
A fixed or limited period for which something lasts
The maximum amount that may be borrowed on a credit card
Money paid regularly for the use of money lent
What is a "credit card"?
A type of loan
A measure of consumer credit risk
A card that allows purchases with borrowed money to be paid back later with interest
A fixed, up-front amount of money as collateral
Credit limit
is the original amount of money borrowed
is the rate charged for borrowing money
is the maximum amount that may be borrowed on a credit card
is a yearly fee that may be charged for having a credit card
What is an "annual fee" in the context of credit cards?
A measure of consumer credit risk
A fixed or limited period for which something lasts
A type of open credit agreement
A yearly fee that may be charged for having a credit card
What does "interest rate" refer to?
The rate at which credit card balance revolves
The rate charged for borrowing money usually expressed as a percent of the amount borrowed
The original amount of money borrowed
The maximum amount that may be borrowed on a credit card
What is a "FICO score"?
A yearly fee for having a credit card
A type of open credit agreement
A measure of a consumer's credit risk
The maximum amount that may be borrowed on a credit card
What is a "secured credit card"?
A card that allows unlimited borrowing without interest
A card that requires a fixed, up-front amount of money as collateral
A card that measures consumer credit risk
A card that has no credit limit
What is "revolving credit"?
The original amount of money borrowed
A fixed or limited period for which something lasts
A type of open credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card, plus interest
The maximum amount that may be borrowed on a credit card
Who is an "authorized user"?
A person who is legally responsible for paying the credit card bill
A person who has permission to use and/or carry another person's credit card but isn't legally responsible for paying the bill
A person who has a fixed, up-front amount of money as collateral for a credit card
A person who pays the annual fee for having a credit card
What is a "co-signer"?
A person who carries another person's credit card
A person who is responsible for paying the annual fee
A person who is legally responsible for another person's credit card debt if the original borrower does not pay
A person who sets the credit limit for a credit card
What is a cash advance?
A loan of cash you obtain with a credit card.
A measure of your reliability to repay a loan.
A three-digit number based on a consumer's credit history.
A low beginning interest rate when an account is first opened.
What does the term "Introductory APR" refer to?
A three-digit number based on a consumer's credit history.
A loan of cash you obtain with a credit card.
A low beginning interest rate when an account is first opened.
Long-term failure to repay a loan.
What is the purpose of the Schumer Box?
To measure a consumer's reliability to repay a loan.
To provide the smallest payment a card company will require each month.
To show basic information about the card's rates and fees in a standard table.
To indicate the cost of credit including amount borrowed plus charges and interest.
What does "Annual Percentage Rate APR" include?
The smallest payment a card company will require each month.
A measure of your reliability to repay a loan.
The cost of credit including amount borrowed plus charges and interest.
A standard table that legally must appear in a credit card agreement.
What is the minimum payment?
The cost of credit including amount borrowed plus charges and interest.
The smallest payment a card company will require a consumer to pay each month.
A measure of your reliability to repay a loan.
A standard table that legally must appear in a credit card agreement.
What does creditworthiness indicate?
A low beginning interest rate when an account is first opened.
A measure of your reliability to repay a loan.
The smallest payment a card company will require each month.
A standard table that legally must appear in a credit card agreement.
What is a credit score?
A measure of your reliability to repay a loan.
A standard table that legally must appear in a credit card agreement.
A three-digit number 300-850 based on a consumer's credit history.
The smallest payment a card company will require each month.
What does default mean in the context of credit?
A low beginning interest rate when an account is first opened.
A measure of your reliability to repay a loan.
A three-digit number based on a consumer's credit history.
Long-term failure to repay a loan.
Property offered by a borrower to protect the interests of the lender is
gambling
collateral
bribe
interest
a rate, number or amount in each hundred
interest
one
percentage
solvent
a period of time between the due date of a payment and when the lender will charged a late fee (does not apply to credit cards)
happy period
sad period
skipping payment period
grace period
