Managing Credit Vocabulary

3. interest rate on the unpaid portion of a balance
6. most commonly used credit score
7. long-term failure to repay a loan
8. financial advisor who helps consumers repay debt in a responsible manner
9. three-digit number based on credit history
12. someone with little to no credit history
15. method of debt repayment in which debts with the highest interest rates are paid down first

1. measurement of outstanding debt divided by total available credit
2. legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay
4. company that collects and sells information regarding credit management
5. measurement of assets minus your liabilities; also called wealth
10. method of debt repayment in which the smallest balances are paid down first
11. record of a person's use of credit over time
13. recovery of a past-due credit obligation or debt by a collection department or agency
14. agreement in which a borrower receives something of value and agrees to repay the lender in the future