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WorksheetsCredit & Debt Vocabulary
Total questions: 75
Worksheet time: 38mins
Name
Class
Date
1.
the paying off of debt over time in equal installments; part of each payment goes towards the loan principal while the other part goes towards interest
a)
Collections
b)
Reposession
c)
Amounts Owed
d)
Amortization
2.
a yearly fee that may be charged for having a specific credit card, independent of how you use the card
a)
Annual Fee
b)
Tax Lien
c)
Amounts Owed
d)
Penalty APR
3.
the cost you pay each year to corrow money, including fees, expressed as a percentage
a)
Penalty APR
b)
Anual Percentage Rate (APR)
c)
Interest Rate
d)
Variable Rate Loan
4.
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)
Unsecured Debt
b)
Secured Debt
c)
Home Equity
d)
Authorized User
5.
a credit card service that allows cardholders to withdraw a certain amount of cash, either their an ATM or directly from a bank, typically at high interest rates or for a fee
a)
Cash Back
b)
Annual Fee
c)
Cash Advance
d)
Tax Lien
6.
a credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment towards their balance, rewards points, travel miles, or gift cards
a)
Cosigner
b)
Cash Advance
c)
Tax Lien
d)
Cash Back
7.
something valuable that the lender can take as payment if you can't or don't repay your loan
a)
Cosigner
b)
Collections
c)
Term
d)
Collateral
8.
a loan that combines two or more loans into a single loan allowing the borrower to make a single monthly payment
a)
Consolidation Loan
b)
Personal Loan
c)
Home Equity Loan
d)
Debt Consolodation Loan
9.
someone who legally agrees to take responsibility for a person's debt if they cannot repay it
a)
Cosigner
b)
Collateral
c)
Loan
d)
Credit
10.
the maximum amount that may be borrowed on a credit card
a)
Credit Limit
b)
Credit Mix
c)
Credit Score
d)
Credit Report
11.
long term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
a)
Credit
b)
Debt
c)
Default
d)
Loan
12.
a loan with an interest rate that does not change over the life of the loan
a)
Home Equity Loan
b)
Personal Loan
c)
Fixed Rate Loan
d)
Variable Rate Loan
13.
number of days between a borrower's statement date and when a payment is due, often without accruing interest
a)
Good Debt
b)
High Rate Method
c)
Tax Lien
d)
Grace Period
14.
the value of owndership built up into a home or property that represents the current market value of the house minus any remaining mortgage payments
a)
Soft Inquiry
b)
Hard Inquiry
c)
Home Equity
d)
Home Equity Loan
15.
a consumer loan extendered to a homeowner that uses the borrower's home as collateral
a)
Personal Loan
b)
Fixed Rate Loan
c)
Home Equity
d)
Home Equity Loan
16.
the amount you own as the cost of borrowing money
a)
Interest
b)
Statement
c)
Interest Rate
d)
Term
17.
rate charged for borrowing money, usually expressed as a percent of the amount borrowed
a)
Net Worth
b)
Interest Rate
c)
Interest
d)
Introductory APR
18.
a typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher APR will apply
a)
Introductory APR
b)
Penalty APR
c)
Interest Rate
d)
Credit Mix
19.
a fee charged if your payment is received after the due date
a)
Statement
b)
balance transfer fee
c)
Annual Fee
d)
Late Payment Fee
20.
an agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest
a)
Term
b)
Debt
c)
Tax Lien
d)
Loan
21.
the smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
a)
Interest
b)
Late Payment Fee
c)
Minimum Payment
d)
Statement
22.
a method of lending very small sums to individuals, typically in developing countries to start or exand a small business
a)
New Credit
b)
FICO Score
c)
Credit
d)
Micro-credit
23.
a higher interest rate triggered by being late with or missing a credit card payment
a)
Annual Fee
b)
Penalty APR
c)
Default
d)
Personal Loan
24.
original amount of money borrowed, separate from interest or fees
a)
Principal
b)
Loan
c)
Credit
d)
Tax Lien
25.
A type of loan issued by a bank, credit union or online lender that you pay back in fixed monthly payments, typically over two to seven years
a)
Principal
b)
Penalty APR
c)
Personal Loan
d)
Fixed Rate Loan
26.
an open line of credit that can be used for any purchases as long as you're under the credit limit. Payment amounts vary each pay period based on the size of the debt.
a)
Micro-credit
b)
Revolving Credit
c)
New Credit
d)
Credit
27.
a standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees
a)
Schumer Box
b)
Collections
c)
Secured Debt
d)
Credit Mix
28.
a type of credit card that requires the borrower to pay the company a fixed, upfront amount of money as collateral, which becomes the credit limit of the card, thereby making it low-risk to the credit card company
a)
Secured Debt
b)
Secured Credit Card
c)
New Credit
d)
Credit Score
29.
Debt tied to a specific tangible asset that can be used as collateral and reposed if payments are no tmade
a)
Unsecured Debt
b)
Secured Debt
c)
Good Debt
d)
Credit
30.
A loan used to fund expenses connected with operating a small business
a)
Home Equity Loan
b)
Personal Loan
c)
Small Business Loan
d)
Variable Rate Loan
31.
a monthly record of your account transations provided by your credit card company electronically or on paper
a)
Debt
b)
Tax Lien
c)
Statement
d)
Interest
32.
the amount of time you have to repay your entire loan
a)
Loan
b)
Term
c)
Debt
d)
Credit
33.
Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made
a)
Unsecured Debt
b)
Interest
c)
Good Debt
d)
Secured Debt
34.
A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan
a)
Variable Rate Loan
b)
Personal Loan
c)
Fixed Rate Loan
d)
Home Equity Loan
35.
how much you own to each creditor individually and in total; 30% of your credit score is based on this
a)
Credit Score
b)
Annual Fee
c)
Amounts Owed
d)
Amortization
36.
A legal process to get out of debt when you can no longer make all your required payments
a)
Bankruptcy
b)
Default
c)
Cash Back
d)
Interest
37.
an attempted recvery of past-due credit obligations or debts by a collection department or agency
a)
Cosigner
b)
Collections
c)
Collateral
d)
Amortization
38.
a consumer-reporting company that collects and sells information about how individual people manage their credit
a)
Credit Limit
b)
Credit Score
c)
Credit Report
d)
Credit Bureau
39.
A certified financial advisor who works for an accredited nonprofit specializing in helping consumers repay debt in a responsible manner
a)
Credit Score
b)
Credit Bureau
c)
Credit Counselor
d)
Credit History
40.
a record of a person's use of credit over time; 15% of your credit score is based on the length of your credit history
a)
Credit Mix
b)
Credit Report
c)
Credit Score
d)
Credit History
41.
a document with information about a person's credit activity and history
a)
Credit History
b)
Credit Report
c)
Credit Score
d)
Credit Limit
42.
A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.
a)
Credit History
b)
Credit Score
c)
Credit Report
d)
Credit Bureau
43.
A measurement of your outstanding debt divided by your total available credit; keep under 30%
a)
Credit Score
b)
Credit Limit
c)
Credit Utilization Rate
d)
Credit History
44.
something, typically money, that is owed or due
a)
Credit
b)
Term
c)
Default
d)
Debt
45.
A detailed plan drawn up by a debt management company (DMC) and sent to an individual's creditors (entities they owe money). It sets out an affordable monthly payment shared between the creditors.
a)
Debt Settlement
b)
Debt Management Plan
c)
Debt Consolodation Loan
d)
Statement
46.
An agreement made between a creditor and a consumer in which the total debt balance owed is reduced and/or fees are waived, and the reduced debt amount is paid in a lump sum instead of revolving monthly
a)
Debt Settlement
b)
Net Worth
c)
Statement
d)
Debt Management Plan
47.
A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first
a)
High Rate Method
b)
Debt Settlement
c)
Debt Snowball Method
d)
Debt Management Plan
48.
a savings account that you can access quickly to pay for unexpected expenses or emergencies
a)
Amounts Owed
b)
Personal Loan
c)
Principal
d)
Emergency Fund
49.
a law that protects consumers from discrimination in the granting or denying of credit
a)
Fair Credit Reporting Act
b)
Credit Report
c)
Equal Credit Opportunity Act
d)
Credit Counselor
50.
a federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files
a)
Credit Report
b)
Truth in Lending Act
c)
Fair Credit Reporting Act
d)
Equal Credit Opportunity Act
51.
A government organization whose role is to protect consumers and competition by preventing anti-competitive, deceptive, and unfair business practices through law enforcement, advocacy, and education
a)
Reposession
b)
Federal Trade Commission
c)
Variable Rate Loan
d)
Fixed Rate Loan
52.
a person's credit score calculated with software from Fair Isaac Corporation (FICO); most commonly used credit score
a)
Credit Score
b)
Micro-credit
c)
FICO Score
d)
Cosigner
53.
An inquiry into your credit history, typically in advance of applying for a loan. Hard inquiries can negatively affect your credit for 12 months and remain on your credit history for two years.
a)
Home Equity
b)
Credit Mix
c)
Soft Inquiry
d)
Hard Inquiry
54.
A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first
a)
Fixed Rate Loan
b)
Statement
c)
Grace Period
d)
High Rate Method
55.
The number of recently opened credit accounts and all new credit inquiries; 10% of your credit score is based on this
a)
Net Worth
b)
Credit
c)
New Credit
d)
Micro-credit
56.
A history of the payments you have made on all credit you have obtained; 35% of your credit score is based on this
a)
Credit Score
b)
Home Equity
c)
Payment History
d)
Credit History
57.
a meausurement of your assets (money you've saved or things of value that you own) - 10% of your credit score is based on this
a)
Default
b)
Net Worth
c)
New Credit
d)
Interest
58.
taking bacj of property after a borrower has defaulted on payments
a)
Collections
b)
Schumer Box
c)
Credit
d)
Reposession
59.
credit inquiry as part of a background check; does not affect your credit score
a)
Home Equity
b)
Cosigner
c)
Hard Inquiry
d)
Soft Inquiry
60.
legal claim by a government entity to take an individual's property or income when their taxes ar enot paid in full
a)
Statement
b)
Tax Lien
c)
Credit
d)
Loan
61.
mix of accounts from credit cards, retail accounts, installment loans, - 10% of your credit score is based on this
a)
Credit
b)
Credit Limit
c)
Credit Mix
d)
Credit Score
62.
high risk company that charges high fees and claims to eliminate a person's debt for them
a)
Consolidation Loan
b)
Debt Management Plan
c)
Personal Loan
d)
Debt Consolodation Loan
63.
a law enacted in the aftermath of the financial crisis of 2008; created the Consumer Financial Protection Bureau to protect consumers from risky & abusive financial products
a)
Good Debt
b)
Dodd Frank Act
c)
Default
d)
Collateral
64.
a type of bankruptcy for people and businesses with limited incomes, wells off assets to repay debts - aka liquidation bankruptcy
a)
Hard Inquiry
b)
Chapter 7 Bankruptcy
c)
Bankruptcy
d)
Chapter 13 Bankruptcy
65.
a type of bankruptcy for people who can afford monthly payments that allows them to keep their assetts - aka reorganization bankruptcy
a)
Chapter 7 Bankruptcy
b)
Bankruptcy
c)
Chapter 13 Bankruptcy
d)
Hard Inquiry
66.
money owed on something you will get a return on, such as an investment; likely to increase a person's net worth or generate future income
a)
Secured Debt
b)
Good Debt
c)
Cosigner
d)
Debt
67.
law that limites what debt collectors can do while trying to collect debts
a)
Collections
b)
Fair Debt Collection Practices Act
c)
Fair Credit Reporting Act
d)
Credit Utilization Rate
68.
a law that requires lenders to fully inform consumers about the cost of credit in a loan or credit agreement
a)
Truth in Lending Act
b)
Fair Credit Reporting Act
c)
Dodd Frank Act
d)
Credit Limit
69.
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
a)
Credit Mix
b)
Debt
c)
Credit
d)
New Credit
70.
the act of transferrign debt from one credit card account to another, usually for a fee
a)
Collections
b)
balance transfer
c)
Annual Fee
d)
balance transfer fee
71.
A fee that may be charged to cardholders for transferring a balance from one card to another.
a)
Late Payment Fee
b)
balance transfer fee
c)
balance transfer
d)
Annual Fee
72.
The amount you must pay on a credit card, based on a percentage of the outstanding balance.
a)
minimum fee
b)
minimum payment
c)
monthly statement
d)
minimum monthly interest charge
73.
Which factor would most likely lead to an increase in the interest rate on a person's credit card?
a)
number of purchases
b)
late payments
c)
number of cash advances
d)
total amount charged
74.
What is a FICO Score?
a)
The act of lending; a grant of the temporary use of something with interest.
b)
A three-digit number based on the information in your credit reports; This score is based on the way you manage credit, from your payment history to your recent credit applications.
c)
The excess of the value of assets over liabilities; the total wealth of an individual, company, or household.
d)
An amount or sum placed at a person's disposal by a bank.
75.
The basic concept of credit is:
a)
Savings
b)
Pay now, buy later
c)
Something only people without high paying jobs need
d)
Buy now, pay later
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