WorksheetsUnderstanding Credit Terms and Definitions
Total questions: 15
Worksheet time: 8mins
Which is the correct definition of a Debtor
the person that is borrowing
the person who or institution that is providing the credit
Which is the correct definition of a Creditor
person that is borrowing
the person who or institution that is providing the credit
Which one is NOT a way you can qualify for credit
Income
Financial position-capital
Collateral
go to the bank
When making a payment on a credit card what does principal mean
amount borrowed
cost of money the money you borrowed
other fees charged to borrow money
minimum amount due each pay period on credit
When making a payment on a credit card what does interest mean
amount borrowed
cost of the money you borrowed
other fees charged to borrow monwy
minimum amount due each pay perion on credit
When making a payment on a credit card what does finance charges mean
amount borrowed
cost of the money you borrowed
other fees charged to borrow money
Minimum amount due each pay period on credit
When making a payment on a credit card what does minimum payment mean
amount borrowed
cost of the money you borrowed
other fees charged to borrow money
minimum amount due each pay period on credit
Which is NOT an advantage of credit
Build a good credit score
money when you need, in case of emergency
Build capital
be able to spend a lot of money you can't pay back
What is NOT a disadvantage of credit
build up debt
high interest fees
stolen idenity
you have something for emergencies that come up
What is the meaning of Open End Credit
as long as you are in good standing, credit is available whenever you want or need it
Credit that once used AND paid off. It goes away
What is the meaning of Close Ended Credit
As long as you are in good standing, credit is available whenever you want or need it
Credit you once used AND paid off. It goes away
Which is NOT a source of credit
Credit card
Retail stores
Bank
Checks
What is a credit history
Complete record of borrowed and repayment
History AND credit score/rating
What is a soft check
A check that is used when applying for a mortgage, auto loan, credit cards, and other lines of credit
A check that inquires into your credit report initiated either by you or a company even if you didn’t apply for credit
What is a hard check
A check that is used when applying for a mortgage, auto loan, credit cards, and other lines of credit
A check that inquires into your credit report initiated either by you or a company even if you didn’t apply for credit
