Credit Vocabulary

2. a fee charged once a year for having certain credit cards or accounts.
6. a request to check a person’s credit report.
8. a card that lets you borrow money from a lender to make purchases, with repayment due later.
9. a person who receives money from a lender and agrees to pay it back.
10. late in making a required payment.
11. the maximum amount a lender allows a person to borrow on a credit account.
13. a number that shows how likely a person is to repay borrowed money.
14. failing to repay a loan as agreed.
17. a poor credit history that shows missed payments, high debt, or other signs of financial risk.
20. property or something valuable used to secure a loan.
21. money that is owed to another person, company, or lender.
22. money or other resources used to buy, invest, or run a business.
23. credit given based on receiving a service now and paying later, such as utility bills.
24. the yearly cost of borrowing money, including interest and some fees.
25. a legal process that helps a person or business deal with debts they cannot repay.

1. borrowed money that is repaid in equal payments over a set period of time.
3. the amount of credit still left to use under the credit limit.
4. debt that is not backed by collateral.
5. the original amount of money borrowed, not including interest.
7. credit that can be borrowed, paid back, and borrowed again, such as a credit card.
8. the ability to borrow money now and pay it back later.
12. debt backed by something valuable that can be taken if payments are not made.
15. a commonly used system for calculating a person’s credit score.
16. being seen as responsible enough to borrow money and likely to pay it back on time.
18. a record of a person’s borrowing history, payment history, and debt accounts.
19. a strong credit history that shows bills are paid on time and money is managed responsibly.
20. a borrower’s ability to repay a loan based on income and current debts.