managing credit

Question 1

annual percentage rate

Answer 1

The interest rate a credit card user will be charged on the unpaid portion of their balance

Question 2

bankruptcy

Answer 2

a legal process that relieves debtors of the responsibility of paying their debts or protects them while they are trying to repay

Question 3

collections

Answer 3

attempted recovery of a past due credit, obligation, or death

Question 4

credit

Answer 4

in agreement in which a borrower receives something of value now, and agrees to repay the weather in the future generally, with interest

Question 5

credit bureau

Answer 5

A company that collects and sells information about how individual people manage their credit

Question 6

credit counselor

Answer 6

an individual who works for an accredited nonprofit specializing in helping consumers repay debt in a responsible manner 

Question 7

credit history

Answer 7

A record of a persons use of credit overtime

Question 8

credit report

Answer 8

A document containing an individuals financial information focusing on payment of their credit obligations overtime 

Question 9

credit score

Answer 9

A three digit number ranging from 300 to 850 based on an individuals credit history

Question 10

credit utilization rate

Answer 10

A measurement of your outstanding debt, divided by your total available credit

Question 11

default

Answer 11

long-term failure to repay a loan according to the terms agreed-upon 

Question 12

FICO score

Answer 12

The most commonly used credit score

Question 13

net worth

Answer 13

your assets minus your liabilities

Question 14

grace period

Answer 14

Time period During which a borrower can pay the full balance of credit that is due with no finance charges.

Question 15

credit freeze

Answer 15

A consumer request that requires the credit bureaus to deny all access to a consumers credit information 

Question 16

fixed rate loan

Answer 16

a loan, for which the interest rate does not change over the life of the loan

Question 17

debt collector

Answer 17

A person or company hired by a creditor to collect the overdue balance on an account 

Question 18

prime rate

Answer 18

The interest rate that banks offer to their best business customers


Question 19

creditworthy

Answer 19

The potential of the creditor, they must determine whether you are a good risk 

Question 20

credit management

Answer 20

means following an individual plan for using credit wisely 

Question 21

rewards program

Answer 21

Earn points, cashback, airline miles, or other special words that you can redeem at a later date

Question 22

credit inquiry

Answer 22

A request by a business with permissible purpose, to check your credit

Question 23

credit repair

Answer 23

The process of reestablishing, a good credit rate

Question 24

billing statement

Answer 24

an itemized bill showing charges credits and payments posted to your account during the billing period

Question 25

debt consolidation

Answer 25

A finance company loans you money to pay off your debt 

Question 26

line of credit

Answer 26

a pre-established amount that can be borrowed on demand with no collateral

Question 27

alias

Answer 27

A note on your credit report that indicates other names used for your financial accounts

Question 28

minimum payment

Answer 28

The lowest amount of money that you are required to pay on your credit card statement each month

Question 29

variable rate loan

Answer 29

The interest rate goes up and down with inflation or other economic factors

Question 30

garnishment

Answer 30

a legal process that allows part of your paycheck to be withheld for a payment of a debt