Credit Terminology 101
Across
- 1. an individual who legally agrees to repay a loan if the primary borrower cannot
- 2. the value of the assets that an individual or a business owns minus the liabilities owed
- 4. the original sum of money that is borrowed
- 5. the assets of an individual or a business that have value in producing revenue
- 7. the percentage of a borrower's monthly income that goes toward paying monthly debt payments
- 10. the amount of time that a borrower has to repay a loan
- 11. an annual percentage rate in which the interest rate is the same for the entirety of the loan period
- 12. any property or assets that can be offered as security for a loan
- 14. a measure of a borrower's present and future ability to repay a loan
- 16. the extent to which borrowers are considered suitable to receive financial credit based on their ability to repay the debt obligation
- 18. a detailed breakdown of the credit activity of an individual
- 20. the maximum amount of money that an applicant is authorized to borrow
- 22. a financial agreement in which a borrower purchases goods or services with the promise to repay the money at some point in the future
- 23. a loan for a fixed amount of money that the borrower repays in regular installments over a prescribed time frame
- 25. an annual percentage rate that involves an interest rate that adjusts over time in response to market changes
- 26. any circumstance that could affect a borrower's financial situation and his/her ability to repay a loan
Down
- 1. the reputation or history of a borrower in repaying debts
- 3. the monetary charge that is paid in exchange for borrowing money
- 6. a line of credit extended to a borrower by a retailer who sells a product or a service being used by the borrower
- 8. an annual percentage rate that offers different rates of interest based on the loan amount or the balance remaining
- 9. an agreement that permits an account holder to borrow money repeatedly up to a set dollar amount
- 13. a numerical expression representing the creditworthiness of an individual
- 15. the yearly rate charged for a loan based on a percentage of the loan amount
- 17. a method of calculating interest charges on the outstanding balance of a loan for the number of days the money is used
- 19. money borrowed from a lending institution that must be paid back in a specified amount of time
- 21. a payment card that deducts money directly from a consumer's checking account when it is used
- 24. a type of loan that is backed or secured by collateral to reduce the risk associated with lending