Credit Terms Quiz

What does APR stand for in credit terms?

• Annual Percentage Rate

• Annual Payment Rate

• Annual Principal Rate

• Annual Penalty Rate

What is the term for the amount of money you currently owe on a credit account?

• Balance

• Credit Limit

• Debt

• Installment

What is a legal process where a person declares they cannot repay their debts?

• Bankruptcy

• Delinquency

• Foreclosure

• Repossession

What is a credit account that has been paid off and is no longer active called?

• Closed Account

• Frozen Account

• Inactive Account

• Dormant Account

What type of credit involves receiving a specific amount of money and repaying it in regular, fixed installments?

• Closed-End Credit

• Open-End Credit

• Revolving Credit

• Flexible Credit

What is the term for when a creditor tries to recover a debt that you haven't paid?

• Collection

• Repossession

• Foreclosure

• Garnishment

What is the ability to borrow money or access goods or services with the understanding that you'll pay for them later?

• Credit

• Loan

• Debt

• Mortgage

What is a security measure that prevents access to your credit report?

• Credit Freeze

• Credit Lock

• Credit Hold

• Credit Block

What is a three-digit number calculated from your credit report that summarizes your creditworthiness?

• Credit Score

• Credit Limit

• Credit Balance

• Credit Rating

What is the most widely used credit scoring model?

• FICO Score

• VantageScore

• Equifax Score

• TransUnion Score