PF Using Credit pt 1.

How many credit accounts does this person have?

• 10

• 07

• 12

• 05

How many payments have been late by 90 days?

• 10

• 04

• 12

• 07

What is principal?

• “The fee that is paid to borrow money.”

• “The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.”

• “The rate lenders charge borrowers for money.”

• “The non-interest portion of a loan.”

What is a credit score?

• “A number that represents how much money a borrower owes.”

• “A score from a test given to borrowers by lenders.”

• “A number that represents the risk a lender takes on a borrower.”

• “An average of all of a borrower's credit accounts.”

What type of loan is a credit card?

• closed-ended

• open-ended

What is a loan?

• “The fee that is paid to borrow money.”

• “A sum of money that is borrowed, which is expected to be paid back with interest.”

• “The paying off of a debt with a fixed repayment schedule in regular installments over a period.”

• “The rate lenders charge borrowers for money.”

What is the total amount of debt this person owes?

• “$8,620”

• “$15,124”

• “$22,425”

• “$7,301”

What category does this account fall into?

• Revolving

• “Open”

• “Collections”

• “Installment”

The three major credit bureaus are Equifax, TransSiberian, and Experion.

• True

• False

What is the Prime Rate?

• “The non-interest portion of a loan.”

• “The fee that is paid to borrow money.”

• “The rate lenders charge borrowers for money.”

• “The number that represents the general level of interest rates in the economy.”