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FREE AND STUDY GAMES ABOUT CREDIT CARD VOCAB
EXAM QUESTIONS
Actual Qs and Ans Expert-Verified Explanation
This Exam contains:
-Guarantee passing score -26 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation
Question 1: interest rate
Answer:
Image result for interest rate An interest rate is the percentage of principal charged by the lender for the use of its money.
Question 2: grace period
Answer:
A grace period is a set length of time after the due date during which payment may be made without penalty.
Question 3: credit limit
Answer:
The term credit limit refers to the maximum amount of credit a financial institution extends to a client
Question 4: introductory rate
Answer:
An introductory rate is an interest rate charged to a customer during the initial stages of a loan.
Question 5: courtesy checks
Answer:
Convenience checks are blank checks provided by lenders that borrowers can use to access credit lines for purchases, transfers, or cash.
Question 6: over the limit fee
Answer:
An over-limit fee is a penalty charged by credit card companies when cardholders' purchases exceed their credit limit.
Question 7: credit bureau
Answer:
a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc.
Question 8: secured loan
Answer:
Image result for secured loan A secured loan is a loan backed by collateral-financial assets you own, like a home or a car-that can be used as payment to the lender if you don't pay back the loan.
Question 9: term
Answer:
A term deposit is a fixed-term investment that includes the deposit of money into an account at a financial institution
Question 10: cash advances
Answer:
cash advance is a short-term cash loan taken against your credit card's credit line.
Question 11: principle
Answer:
The principal is the original amount of a loan or investment
Question 12: credit score
Answer:
credit score is a number between 300-850 that depicts a consumer's creditworthiness.
Question 13: credit card
Answer:
a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Question 14: debt
Answer:
something, typically money, that is owed or due.
Question 15: balance transfers
Answer:
balance transfer is a type of credit card transaction in which debt is moved from one account to another.
Question 16: credit report
Answer:
credit report is a detailed summary of an individual's credit history, prepared by a credit bureau.
Question 17: line of credit
Answer:
Image result for line of credit A line of credit (LOC) is a preset borrowing limit that can be used at any time.
Question 18: annual fee
Answer:
annual fee is a yearly charge by banks and financial institutions to customers for use of their credit cards.
Question 19: bankruptcy
Answer:
Bankruptcy Filing bankruptcy can help a person by discarding debt or making a plan to repay debts.
Question 20: credit history
Answer:
Your credit history describes how you use money
Question 21: finance charge
Answer:
A finance charge is any cost a consumer encounters in the process of obtaining credit and repaying deb
Question 22: pre approved
Answer:
pre-approval is a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer.
Question 23: annual percante rate
Answer:
An annual percentage rate is expressed as an interest rate. It calculates what percentage of the principal you'll pay each year by taking things such as monthly payments into account.
Question 24: lender
Answer:
an organization or person that lends money.
Question 25: late payment fee
Answer:
A late fee is a charge imposed on a consumer who fails to make the payment on a debt or other financial obligation by the due date
Question 26: co signer
Answer:
A co-signer is a person - such as a parent, close family member or friend - who pledges to pay back the loan if you do not.
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