Chapter 3 Credit (Sections 1-2)

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Across
  1. 2. Security, such as a personal belonging, car or boat title, CD, or stock certificates, that insures a loan will be repaid.
  2. 4. A ________ payment plan requires the borrower to make periodic payments but no interest is charged if the payments are made on time. With deferred payment plans, borrowers pay the same price for an item as if they paid for it in full at the time of purchase, and they take possession of the item immediately.
  3. 5. Organization or person who uses credit.
  4. 6. garnishment
  5. 10. A method of payment of a purchase or services over a period of time.
  6. 12. The _______ power is a person’s ability to earn money now and in the future.
  7. 13. ______ assignment is a voluntary deduction from an employee’s paycheck, used to pay off debts.
  8. 15. The upfront money applied to a purchase that is made using a loan (credit) is called a ______ payment.
  9. 16. Called a credit ______, this is a numerical value that indicates how well a user of credit meets financial obligations; these records are used by creditors when they decide to issue credit.
  10. 19. A credit ___________ agency is an organization that compiles records on users of credit as to how well they repay their debts.
  11. 21. This is the last monthly payment on some loans that is much greater than the previous payments.
  12. 22. An agreement that states the conditions of a loan is called a _________ note; a borrower’s signature confirms a promise to pay back the loan as outlined in the agreement.
Down
  1. 1. When something is bought that is not paid for at the time of purchase.
  2. 3. A person that signs a promissory note along with the borrower and agrees to pay back the loan if the borrower does not.
  3. 4. Describes the situation when a borrower fails to make payments according to the schedule set up when the loan originated.
  4. 7. A person’s property or what is owned.
  5. 8. A score that summarizes the probability that a debtor will pay a debt and is a reliable way that creditors judge creditworthiness.
  6. 9. involuntary form of wage assignment, referred to as wage _________, often done by court order.
  7. 11. The _______ institution is an organization that extends loans, making their profit by charging interest; includes banks, savings and loans, credit unions, consumer finance companies, life insurance companies, and pawnshops.
  8. 14. A type of insurance that pays a specified amount upon the policyholder’s death; a creditor often requires a borrower to take out life insurance to cover the loan in the event the borrower dies before the loan is paid.
  9. 17. Organization or person who extends credit to debtors.
  10. 18. _________ privilege is an agreement that allows a borrower to make payments before the due date to reduce the amount of interest.
  11. 20. Prepayment ______ is an amount borrowers sometimes must pay if they wish to pay back an entire loan before the due date.