| Credit Report | A detailed report of an individual’s credit history |
| Loan Term | Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term |
| Depreciation | A decrease or loss in value |
| Credit Score | A measure of an individual’s credit risk; calculated from a credit report using a standardized formula |
| Debt Snowball | Preferred method of debt repayment; includes a list of all debts organized from smallest to biggest balance; minimum payments are made to debts except for the smallest, which is attacked with the largest payments |
| Annual Percentage Rate | Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan |
| Credit Card | Type of card issued by a bank that allows users to finance a purchase |
| Annual Fee | A yearly fee that’s charged by the credit card company for the convenience of the credit card |
| False | You must establish credit in order to buy a house. |
| False | If you are a victim of identity theft, you are only responsible for paying back half of the debt. |
| Paying cash for all purchases | Which of the following is not a factor in determining a FICO score? |
| Borrow money from your parents to pay off the debt | Which of the following is not a good idea for getting out of debt? |
| Go into debt | Which of the following things cannot be done with a debit card but can be done with a credit card? |
