Intro to Credit

What is the principal of the loan?

• the initial amount of the loan

• the cost of borrowing the loan

• the period of time you take out the loan for

• a manager in charge of the loan

What is a loan term?

• The amount of time a revolving line of credit can be open

• The payment of income to a savings account in regular payments over a set period of time.

• The period in which the loan is to be repaid, each payment broken down into individual installments

• Specifically related to the black market for human organs, and typically meant as the length of time one's kidney will be used for other purposes

Type of loan used specifically for purchasing a home is a __________

• Mortgage
• Student Loan
• Equity Line of Credit
• Credit Card

Another name for open ended credit is ____________ credit

• Never ending
• Revolving
• Spinning
• Endless

_____________ is a report that details how a person has used credit in the past.

• Credit report
• Credit card
• Credit score
• Credit history

This is when the interest rate will remain the same for the life of the loan

• Adjustable rate
• Balloon rate
• Never changing rate
• Fixed rate

If the collateral for your secured loan can be taken away, why get a secured loan at all?

• Because they usually have a higher interest rate

• Because they usually have a lower interest rate

• Banks give you an extra 90 days to make a missed payment

• Banks typically don't charge interest for the first 12 months

What is the ability to acquire money, goods or services from others without immediate payment; an agreement to repay the purchase price and whatever interest is incurred?

• Annual Fees

• Credit

• Intermediate-term Loans

• FICO Scores

What is a line of credit extended to individuals or businesses who may use it as often as desired up to a specific dollar limit?

• Annual Percentage Rate

• Credit Cards

• Intermediate-term Loans

• Revolving Credit

Credit not backed by collateral

• car loan
• unsecured credit
• secured credit
• defered payments