Loans, Credit and Credit Card Test

Front

What is the difference between revolving credit and installment credit?

Back

Revolving credit renews automatically while installment credit has fixed payments.

Front

What is an appreciating asset?

Back

An asset that increases value over time.

Front

What is a depreciating asset?

Back

An asset that loses value over time.

Front

What is collateral when using for loans?

Back

An asset that secures the loan.

Front

Which term describes the difference between what you owe on your home and what you could get from the current market value?

Back

Equity

Front

The additional cost of borrowing money you need to pay is called

Back

Interest

Front

A legal claim against (or right to take/own) an asset until the debt is repaid, usually put on homes.

Back

Lien

Front

What factor most heavily influences a credit score? Options: Payment history, Current salary, Education level, Age

Back

Payment history

Front

The length of time you have to repay a loan is called the

Back

Term

Front

What is debt?

Back

Money owed to others.