WorksheetsCredit Vocabulary
Total questions: 35
Worksheet time: 18mins
What is an Annual Fee in terms of credit cards?
The method of buying goods and services and paying for them later.
A bank charge for using a credit card charged annually, billed directly on the customer's statement.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
The period during which charges are applied to your credit card.
What does Annual Percentage Rate (APR) mean?
The maximum amount of debt a buyer can carry.
A document requesting credit approval that provides personal, financial, and employment information.
The interest rate that reflects the total annual cost of interest on a loan, expressed as a percentage.
An assessment by a creditor or credit bureau to reflect a debtor's past credit history based on their payment pattern.
What is an Authorized User in the context of credit card accounts?
A person who is given permission to use a credit card account.
A person who co-signs a loan and assumes equal legal responsibility for the debt.
The property or tangible assets used as security to obtain a loan.
The period used to calculate the balances and monthly finance charge on your credit card.
What is Bankruptcy?
What is Bankruptcy?
The legal inability or impairment of an individual or organization to pay its creditors.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
The maximum amount of debt a buyer can carry.
What is a Cash Advance?
Using your credit card to get cash from an ATM.
A bank charge for using a credit card charged annually.
A document requesting credit approval providing personal, financial, and employment information.
An evaluation by a creditor or credit bureau to reflect a debtor's past credit history.
What is considered as Collateral?
The maximum amount of debt a buyer can carry.
The property or tangible assets used as security to obtain a loan.
A method of buying goods and services now and paying for them later.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
What is a Cosigner?
A person who signs a loan and assumes equal legal responsibility for the debt.
A person who is given permission to use a credit card account.
The property or tangible assets used as security to obtain a loan.
The period used to calculate the balances and monthly finance charge on your credit card.
What is Credit?
The maximum amount of debt a buyer can carry.
A method of buying goods and services now and paying for them later.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
Property or tangible assets used as security to obtain a loan.
What is a Credit Application?
A method of buying goods and services now and paying for them later.
A document requesting credit approval that provides personal, financial, and employment information.
The maximum amount of debt a buyer can carry.
The property or tangible assets used as security to obtain a loan.
What is a Credit Bureau?
An agency that collects and sells information about how people handle credit.
A method of buying goods and services now and paying for them later.
The maximum amount of debt a buyer can carry.
A document that requests credit approval providing personal, financial, and employment information.
What is a Credit Card?
A method of buying goods and services now and paying for them later.
A card used to buy goods and services from the issuing merchant on credit. Generally due in thirty days.
The maximum amount of debt a buyer can charge.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
What is Credit History?
An evaluation by a creditor or credit bureau to reflect a debtor's past credit history.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
A method of purchasing goods and services now and paying for them later.
The maximum amount of debt a buyer can carry.
What is the Credit Limit?
The maximum amount of debt a buyer can charge.
A method of buying goods and services now and paying for them later.
A record of a consumer's ability to pay debts and demonstrated responsibility in debt payment.
A company that collects and sells information on how people handle credit.
What is a Credit Rating?
A record of a consumer's ability to repay debts and demonstrated responsibility in debt payment.
The maximum amount of debt a buyer can carry.
An assessment by a creditor or credit bureau to reflect a debtor's past credit history based on their payment pattern.
A method of purchasing goods and services now and paying for them later.
What are Credit Reports used for?
To record the amount of money left from your paycheck after taxes and other deductions are paid
To review by loan companies, banks, etc., to evaluate if a debtor may be extended credit
To list the minimum amount a cardholder can pay to keep the account from going into default
To charge a customer whose monthly payment has not been received as of the due date
Who is considered a Creditor?
An individual who owes money
A person or company with whom a consumer has an outstanding debt
A bank card with direct access to a cardholder's account
The amount you earn from working before taxes and other deductions are taken out
What is a FICO Score?
The minimum amount a cardholder can pay to keep the account from going into default
The charge for using a credit card, comprised of interest costs and other fees
A credit score number developed by the Fair Isaac Company
The amount of money left from your paycheck after taxes and other deductions are paid
What does a Fixed-Rate refer to?
The charge to a customer whose monthly payment has not been received as of the due date
The low rate charged by a lender for an initial period to entice borrowers
The interest rate that does not change during the life of the loan
The amount you earn from working before taxes and other deductions are taken out
What is a Mortgage?
A charge to a customer whose monthly payment has not been received as of the due date
The minimum amount a cardholder can pay to keep the account from going into default
The amount of money left from your paycheck after taxes and other deductions are paid
Loan used to purchase a home
What is an Over limit fee?
A fee charged for exceeding the credit limit on the card
A fee charged for late payment on the card
A fee charged for withdrawing cash on the card
A fee charged for closing the credit card account
What does Pre-Approval for a credit card indicate?
The cardholder has excellent credit history
The potential customer has passed a preliminary credit information screening
The cardholder has been approved for unlimited credit
The cardholder's credit limit has been increased
What is the Principal in terms of borrowing money?
The interest rate charged on the loan
The amount of money borrowed
The total amount of money including interest
The amount of money that remains unpaid
What is a Revolving Line of Credit?
A fixed amount of credit that cannot be borrowed again once repaid
An agreement to lend a specific amount to a borrower and to allow that amount to be borrowed again once it has been repaid
A loan that must be repaid in full at the end of the term without the possibility of borrowing again
A credit line that revolves based on the stock market
What is the difference between Secured Debt and Unsecured Debt?
Secured Debt is linked to collateral, while Unsecured Debt is not
Unsecured Debt is linked to collateral, while Secured Debt is not
Secured Debt has higher interest rates than Unsecured Debt
Unsecured Debt is only for business loans, while Secured Debt is for personal loans
What does a Variable Rate imply?
The interest rate is fixed for the term of the loan
The interest rate changes based on the borrower's credit score
The interest rate changes up or down, depending upon current interest rates
The interest rate varies based on the amount of the loan
What is a Grace Period in terms of credit card payments?
The time during which no interest is charged on a new purchase if the previous balance was paid in full.
A period during which all transactions are put on hold.
The time allowed for the cardholder to change their mind about a purchase.
The minimum time to wait before applying for another credit card.
What is the purpose of a Minimum Payment on a credit card?
To cover the interest and fees only, without reducing the principal balance.
The smallest amount that can be paid to keep the account in good standing.
A payment that eliminates the need for interest charges.
The total amount due at the end of the billing cycle.
What is a Debit Card?
A card that allows spending only up to the amount deposited in the associated account.
A card that accumulates rewards for purchases made.
A card that provides a line of credit to the cardholder.
A card used to earn interest on the balance maintained.
What is a Secured Credit Card?
A credit card that is secured by a deposit account owned by the cardholder.
A credit card with unlimited credit limit.
A credit card that does not require a credit check.
A credit card that automatically pays off any debt at the end of each month.
What is a down payment?
Cash payment paid to the bank for past taxes.
Cash payment made on credit purchase before balance is figured.
Cash payment made on a past purchase before balance is figured.
Cash given to the purchaser.
This is the period used to calculate your balances and monthly finance charges applied to your credit card.
billing days
billing period
monthly billing
Due date
A fee that occurs when moving balance from one credit card to another.
Cash Advance Fee
Annual Fee
Transaction Fee
Penalty Fee
Person who borrows the money
Creditor
Debt
Credit
Debtor
What is gross income?
The amount you earn from unemployment.
The amount of money you earn each day in cash.
The amount you earn from working before taxes and other deductions are taken out.
The amount you earn from working after taxes and other deductions are taken out.
What is the meaning when the creditor takes back goods when debtor is unable to make payments?
(a)
