Consumer Credit

The Rate lenders charge borrowers for money

• Interest Rate

• Interest

• Credit Score

• Principal

The non-interest portion of a loan

• Interest Rate

• Principal

• Interest

• Credit Score

A fee that is paid to borrow money

• Interest Rate

• Principal

• Credit Score

• Interest

Credit allows you to 

• Sell items at an outrageous price

• borrow money now so you can pay for an item later

• pay money up front to purchase and item

• obtain items without paying for them at all

What is a credit score?

• A number that determines whether you are an honest person

• A number that represents whether or not you can afford an item

• A number that represents the risk a financial institution will take in loaning you mon

• A number that determines how much debt you have

What are the three major credit bureaus?

• Transunion

• Experian

• Trans-America

• Equifax

Lenders use your average score to determine 

(select all that apply)

• Whether or not you pay our bills on time

• How much credit you will be awarded

• your Character

• Whether you will be approved for credit

Who is likely to received the best and lowest interest rates on a loan?

• Those with lowest credit scores

• Those with highest credit scores

Student Loan

• A Sum of of Money Borrowed that is expected to be paid back with interest

• Loans offered to college students to help cover the cost of their education

• A loan that is guaranteed (backed) by a personal or business asset (Car, house, etc.)

• A long that is NOT guaranteed by an asset. It relies solely on the credit history to qualify

Loan

• A Sum of of Money Borrowed that is expected to be paid back with interest

• Loans offered to college students to help cover the cost of their education

• A loan that is guaranteed (backed) by a personal or business asset (Car, house, etc.)

• A long that is NOT guaranteed by an asset. It relies solely on the credit history to qualify