Unit 5: Credit

Question 1

The three credit Bureaus are ______, _______, and _______

Answer 1

TransUnion, Experian, and Equifax

Question 2

A _____ prevents a person from unpaid

Question 3

An _________ is the person who uses a credit card, but is not pay it

Answer 3

authorized user

Question 4

Trading in loans for one of different terms is called _______ when your new loan saves you ______ or more

Answer 4

refinancing, 2%

Question 5

_____ are what home buyers pay after they finish home buying process

Question 6

______ act is designed to protect customers from unfair credit billing practices

Answer 6

Fair credit billing act

Question 7

_______ or closed ended credit means you pay _______ amounts of money monthly

Answer 7

installment credit, similar

Question 8

_______ or open ended credit means you pay _______ per month

Answer 8

revolving credit, as you need

Question 9

The original value of the loan is the ___

Answer 9

principle

Question 10

The amount that a lender charges is expressed as a _______ of the principle (interest)

Answer 10

percentage

Question 11

the period of time of a lifespan of an investment

Answer 11

term

Question 12

a secured loan has ____ interest rates and ______ amounts loaned. It (does/does not) require collateral loans.

Answer 12

higher, lower, does

Question 13

a unsecured loan has ____ interest rates and ______ amounts loaned. It (does/does not) require collateral loans.

Answer 13

higher, lower, does not

Question 14

a ______ rate stays the same

Answer 14

fixed

Question 15

a _______ rate inc/dec based on federal interest rates.

Answer 15

variable

Question 16

A ___ takes responsibility for the loan made if it goes unpaid. It could affect your ____ ___.

Answer 16

cosigner, credit score

Question 17

Unpaid Credit cards have an interest rate of ______ to _______

Answer 17

18-24%

Question 18

Payday loans have interest rates of ___ to ______

Answer 18

28-40%

Question 19

Loan sharks have an interest rate of ___ to _____

Answer 19

50-400%

Question 20

Auto loans are I/R, S/U, V/F

Answer 20

IS, either

Question 21

credit card loans are I/R, S/U, V/F

Answer 21

RU, either

Question 22

mortgage loans are I/R, S/U, V/F

Answer 22

IS, either

Question 23

payday loans are I/R, S/U, V/F

Answer 23

IUF

Question 24

personal loans are I/R, S/U, V/F (from bank)

Answer 24

IU, either

Question 25

small business loans are I/R, S/U, V/F

Answer 25

either, S, either

Question 26

student loans are I/R, S/U, V/F (federal)

Answer 26

IUF

Question 27

an _______ payment is made up of ____ and ________

Answer 27

amortization, interest, principle

Question 28

the final loan payment that is much larger than the regular monthly payments is known as a ______ payment.

Answer 28

balloon

Question 29

the 3 Cs or credit card are ______, ________, ________

Answer 29

capacity (ability to repay), character, (reliable person) and collateral (collateral back up)

Question 30

A _______ pays off credit card in full every month on time

Answer 30

deadbeat

Question 31

A ________ is the amount of money available to lend back paychecks later.

Answer 31

line of credit

Question 32

You ususally repay your credit within the ______

Answer 32

month

Question 33

The most profitable loans have the _____ terms and have the ______ monthly payments

Answer 33

longest, lowest