Credit Terms Quiz

What is the percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding?

• Annual Fee

• Credit Limit

• Interest Rate

• Principal

What does APR stand for in financial terms?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Principal Rate

• Annual Premium Rate

What is a yearly fee charged by credit card companies to customers for the use of their credit card?

• Credit Line

• Installment Loan

• Annual Fee

• Minimum Payment

What is the maximum amount of credit a lender extends to a borrower called?

• Credit History

• Credit Line

• Credit Score

• Credit Limit

What type of loan is repaid over time with a set number of scheduled payments?

• Installment Loan

• Credit Card

• Collateral Loan

• Principal Loan

What is a card issued by a financial company giving the holder an option to borrow funds?

• Credit Card

• Debit Card

• Gift Card

• Loyalty Card

What is an asset that a borrower offers to a lender to secure a loan?

• Capital

• Collateral

• Credit

• Principal

What is the smallest amount of a credit card bill that a consumer can pay to remain in good standing?

• Minimum Payment

• Annual Fee

• Principal

• Interest Rate

What is a record of a borrower's responsible repayment of debts used by lenders to gauge risk?

• Credit History

• Credit Score

• Credit Limit

• Credit Line

What is wealth in the form of money or other assets owned by a person or organization?

• Credit

• Capital

• Collateral

• Principal