Understanding Financial Terms in Consumer Credit Quiz

The cost of borrowing, including interest and fees, expressed as a yearly percentage.

A numerical evaluation of an individual's creditworthiness, based on credit history and financial behavior.

The lowest required payment to keep a credit card account in good standing.

The cap on the total amount a borrower can owe on a credit account.

A flexible credit arrangement allowing repeated borrowing within a specified credit limit.

The span in which no interest is applied to credit card purchases, typically if the full balance is paid by the due date.

The proportion of a person's credit limit that is currently being utilized, affecting credit score.

Property or assets offered as security for a loan, which can be seized if the borrower defaults.

Gradual repayment of a loan through scheduled, periodic payments, reducing the outstanding balance.

Interest computed on both the initial amount borrowed and the accumulated interest over previous periods.

Failing to meet agreed-upon payment terms, leading to consequences such as penalties or legal action.

A legal proceeding enabling individuals or businesses to eliminate or restructure debts under court supervision.

The original sum of money borrowed or invested, excluding interest and fees.

A fee covering the administrative costs of processing a new loan application.

Merging various debts into one to simplify payments or secure a lower interest rate.

The legal procedure where a lender repossesses a property due to the borrower's failure to meet mortgage obligations.

Professional assistance to help individuals manage debt, budget, and improve their credit standing.

Any financial obligation or debt that an individual or entity owes to others.

A legal right or interest that a lender holds in a borrower's property, granted until the debt is satisfied.