WorksheetsTypes of Credit Vocab
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
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)
Minimum payment
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
2.
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)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
3.
The amount still owed on a loan from the perspective of a borrower or lender
a)
Outstanding balance
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
4.
A mortgage in which the initial interest rate is fixed only for a set period of time and then it changes based on the current rate (could go up or down)
a)
Adjustable Rate Mortgage
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
5.
loans that imposes unfair, deceptive, or abusive loan terms on borrowers. In many cases, these loans carry high fees and interest rates. (A payday loan is an example of this)
a)
Predatory lending
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
6.
An open line of credit that can be used for any purchases as long as you are under the limit; its payments vary monthly based on size of the debt (a credit card is an example of this type of credit)
a)
Revolving credit
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
7.
something, usually money, owed by one party to another.
a)
Debt
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
8.
A loan with an interest rate that does not change over the life of the loan
a)
Fixed Rate Loan
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
9.
a number assigned to a person that indicates to lenders their capacity to repay a loan.
a)
Credit Score
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
10.
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)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
11.
The rate charged for borrowing money usually expressed as a percent of the amount borrowed
a)
Interest Rate
b)
Principal
c)
Term
d)
Secured loan/debt
e)
Variable rate loan
12.
Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made
a)
Secured loan/debt
b)
Principal
c)
Interest Rate
d)
Term
e)
Variable rate loan
13.
A contract (often used for cars or property) by which one party gives property to another for a specified time, usually in return for a periodic payment
a)
Lease
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
14.
The cost you pay each year to borrow money, including fees, expressed as a percentage
a)
Annual Percentage Rate (APR)
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
15.
A loan taken by individuals and businesses to make real estate purchases (home, land, business) without paying the entire value of the purchase up front
a)
Mortgage
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
16.
The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest
a)
Amortization
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
17.
Original amount of money borrowed (the actual amount of money needed for the loan), separate from interest or fees
a)
Principal
b)
Interest Rate
c)
Term
d)
Secured loan/debt
e)
Variable rate loan
18.
a card that lets you spend money from your checking account without writing a check. You can use this to buy things in a store and get cash from an ATM.
a)
Debit card
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
19.
A partial payment made in cash at the beginning of the purchase of a good the remaining balance is due later or is financed as part of a loan. This decreases the amount of the principle needed for the loan.
a)
Down payment
b)
Principal
c)
Interest Rate
d)
Term
e)
Secured loan/debt
20.
The amount of time you have to repay your entire loan
a)
Term
b)
Principal
c)
Interest Rate
d)
Secured loan/debt
e)
Variable rate loan
100 %
