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? |