Chapter 10 Credit Review

Front

The finance charge (or interest) calculated as a percentage of the amount borrowed is known as the _______________.

Back

Annual percentage rate (APR)

Front

The total amount a borrower must pay for a loan is the _____________.

Back

Finance charge

Front

The maximum amount that you may charge on your credit account is your ___________.

Back

Credit limit

Front

A company that collects information about your credit history and sells it to lenders is a ________________.

Back

Credit bureau

Front

A measure of your financial ability to repay a loan is your _______________.

Back

Capacity

Front

If you have bad credit or no credit, you will need a _____________ (a contractual agreement to pay a debt if the borrower does not pay it).

Back

Cosign

Front

A record of your past borrowing and repayments is your ______________.

Back

Credit history

Front

A measure of your financial responsibility, often based on your credit history is known as your ___________.

Back

Character

Front

The difference between the amount owed on a home and the home's value is ___________.

Back

Equity

Front

The ability to borrow money in return for a promise of future repayment is ____________.

Back

Credit