Credit vocab

2. If you only pay the __________ on your credit card bill each month, it will take much longer to pay off your debt due to interest.
4. Because you can spend, pay back, and spend again, a line of credit is considered a form of __________.
6. A 60-month __________ on a car loan means you will be making payments for exactly five years.
7. When you use a(n) __________, you are spending the bank's money and promising to pay it back, which helps build your credit history.
8. Saving up a large __________ for a new house can help lower the total amount you need to borrow from the bank.
9. A student loan is a type of __________ because you pay it back in equal monthly amounts until the balance is zero.

1. To keep a high credit score, experts recommend keeping your __________ below 30% of your total limit.
3. It is important to compare the __________ of different credit cards to see which one charges the highest interest rate.
5. When you make a loan payment, part of the money goes toward interest and the rest reduces the original __________ you borrowed.
8. If a borrower goes into __________, it means they have failed to meet the legal obligation of repaying their loan.