Credit Management Test Review

________ is the use of someone else's money, borrowed now with the agreement to pay it back later.

• Debit

• Credit

• Collateral

• Capital

Between 1920 and 1990, buying on _______ became the American way of life.

• Cash

• Debit

• Capital

• Credit

A ___________ is a person who borrows money from others.

• creditor

• Loaner

• Lender

• Debtor

A _________ is a person or business that loans money to others.

• creditor

• debtor

• capital

• collateral

To qualify for credit, you must have the ability to repay the loan. Qualifications are based on

• income, capital, cars

• income, capital, collateral

• cars, capital, collateral

• income, cars, collateral

Two disadvantages of credit are

• deferred billing, buying now

• emergency fund, purchasing power today

• paying finance charges, overspending

• buying now, emergency fund

Your credit __________ is the complete record of your borrowing and repayment performance.

• files

• history

• card

• account

TransUnion, Experian and Equifax are 3 of the big national credit ____________.

• bureau's

• banks

• unions

• stores

Using the bank’s money that’s borrowed now, with an agreement to pay it back later:

• Debt

• Credit

• Creditor

• Loan

For an automobile loan the car is considered_____. If loan is not paid, the car will be repoed.

• Capacity

• Capital

• Character

• Collateral