U6- Spending L1 Credit Reports/Scores

Question 1

someone who receives something with a promise to return it or its equivalent

Answer 1

borrower

Question 2

loan of a certain amount of money that a borrower must repay in a specified number of equal payments. Also known as installment credit

Answer 2

closed-end credit

Question 3

businesses hired by lenders to pursue payments on debts that borrowers have not paid back according to the terms of the credit contract

Answer 3

collection agency

Question 4

person who is equally responsible for paying back debt under the credit terms

Answer 4

co-signer

Question 5

refers to goods, services and/or money received in exchange for a promise to pay back a definite sum of money at a future date

Answer 5

credit

Question 6

record of the borrower’s past loans and credit-related transactions

Answer 6

credit history

Question 7

maximum dollar amount that can be borrowed

Answer 7

credit limit

Question 8

record of a person’s use of credit

Answer 8

credit report

Question 9

agencies that create credit reports based on info they receive from lenders regarding a borrow’s account history with that lender. Also known as credit bureaus

Answer 9

credit reporting agency

Question 10

numerical summary of your credit history that indicates your credit worthiness (likelihood of repaying a loan as agreed)

Answer 10

credit score

Question 11

when a borrow fails to keep up with mortgage payments and the lender takes possession of the property

Answer 11

foreclosures

Question 12

person or organization who makes funds available for others to borrow

Answer 12

lender

Question 13

line of credit established in advance so that a borrower does not have to apply for credit each time new credit is desired. Also known as revolving credit

Answer 13

open-end credit

Question 14

legal claim by a government entity to take an individual’s property or income when their taxes are not paid in full

Answer 14

tax lien