Key Terms | Section 1 | Section 2 | Section 3 | Section 4 |
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Depreciation
a decrease or loss in value
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Personal Debt
the amount of money an individual person owes
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Secured Loan
usually needed when borrowing large amounts of money; usually have lower interest rates and longer repayment terms
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Fair Isaac Corporation
what does FICO stand for?
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Layaway
an agreement in which the seller reserves an item for a buyer until the buyer pays for the item in full
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Credit Card
type of card issued by a bank that allows users to finance a purchase
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National Debt
the amount of money a country owes
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Repossession
process of a lender taking something back (like a car) for failure to make payments
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Credit Bureaus
commonly referred to as consumer reporting agencies or credit reporting agencies
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Federal Trade Commission
what does FTC stand for?
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Loan Term
time frame that a loan agreement is in force, and before or at the end of which the loan should either be rapid or renegotiated for another term
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C. 39%
___ of incoming college freshman already have a credit card.
A. 12% B. 24% C. 39% D. 48% |
Bankruptcy
a legal procedure for dealing with debt when an individual or business cannot repay what they owe
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FICO and VantageScore
what are two major credit scoring systems?
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Home Equity Loan
borrowing money against your house
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Introductory Rate
an interest rate charged to a customer during the early stages of a loan
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Obligated
when someone borrows money from another, they are _________ to repay.
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D. quit borrowing more money!
what is the first step to getting out of debt?
A. sell something B. use the debt snowball method C. save money D. quit borrowing money |
the risk of you not repaying your debt
what does credit score measure?
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D. Experian, TransUnion, and Equifax
what are the three main credit bureaus?
A. Experian, Equifax, and Innovis B. Equifax, Innovis, and ChexSystems C. McDonald, Wendy's, and Burger King D. Experian, TransUnion, and Equifax |
Debt Snowball
minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments
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A. $18.5 billion
total 2011 earnings for the entire credit card industry were_____.
A. $18.5 billion B. $14.6 billion C. $17.2 billion |
A. 3.5
what is the average number of credit cards per person?
A. 3.5 B. 1.5 C. 2 D. 1 |
B. 176.8 million
the total number of card holders in the U.S. is...?
A. 154.8 million B. 176.8 million C. 184.6 million |
Inaccurate Information
the only information that may be legally removed from a credit report is...?
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