Credit

Question 1

The amount that remains due on a loan

Answer 1

Balance Due

Question 2

Last date of the billing cycle any purchases can be made

Answer 2

Billing Date

Question 3

Person Using Credit

Answer 3

Borrower

Question 4

Property you possess worth more than your debt

Answer 4

Capital

Question 5

Personal property pledged to secure a loan

Answer 5

Collateral

Question 6

Business or person that you’re borrowing the credit from

Answer 6

Creditor

Question 7

the date on which the payment is due

Answer 7

Due date

Question 8

Pay for the use of credit

Answer 8

Finance charge

Question 9

to divide over a period of time

Answer 9

Pro-rate

Question 10

a loan where the borrower pledges property to assure repayment

Answer 10

Secured-Loan

Question 11

A fee charged for servicing an account

Answer 11

Service Charge

Question 12

Advantages of Consumer Credit

Answer 12

Line of credit

Deferred billing

Question 13

A pre established amount that can be borrowed on demand

Answer 13

Line of Credit

Question 14

Purchases are not billed to the customer until a later date

Answer 14

Deferred Billing

Question 15

Disadvantages of Credit

Answer 15

Reduces comparative shopping
Future income is tied up
Can lead to overspending

Question 16

Unlicensed lenders who charge very high illegal interest rates

Answer 16

Loan Sharks

Question 17

3 Major Credit Bureaus

Answer 17

Equifax, Experian, TransUnion

Question 18

Credit Worthiness (5 Cs)

Answer 18

Character, Capacity, Capital, Conditions, Collateral

Question 19

Tips on getting started with credit

Answer 19

Begin with savings account, Open a checking account, Maintain checking account digitally, Get a small loan, apply for credit card

Question 20

Major Causes of Bankruptcy

Answer 20

Business failure, emotional spending, Failure to budget and plan, catastrophic injury or illness

Question 21

Two types of Filing Bankruptcy

Answer 21

Chapter 7 and Chapter 13

Question 22

Straight bankruptcy in which many, but not all debts are forgiven. (Stays on credit report for 10 years)

Answer 22

Chapter 7

Question 23

Debtors keep property and have a court enforced plan to repay debt over time up to 5 years. ( Stays on credit report for 7 years)

Answer 23

Chapter 13