Chapter 26: How to Get and Keep Credit

Grace period

A(n) ________ is an amount of time allowed to repay a debt without having to pay interest charges.

Principal

The ________ is the amount of borrowed money that is still owed and on which interest is based.

main applicant

A cosigner is someone who agrees to be responsible for a debt if the ________ does not repay it.

total cost

A down payment is a portion of the ________ that is paid when a product or service is purchased.

Mortgage

Similarly, a(n) ________ is a loan agreement secured by property.

Credit

________ can have a major impact on a consumers life.

Consumers

________ with low credit ratings are usually given higher interest rates and more restrictions.

Capacity

________ is the applicants ability to repay the loan.

Credit card companies

________ can obtain a court order to take all or part of a debtors paycheck if he or she stops making payments.

Cash advance

A(n) ________ is a loan given in cash by a credit card company in anticipation of the borrowers being able to repay.

collateral

If the loan is backed by ________, it is called a secured loan.

finance charge

The ________ is the total amount it costs the borrower to have the lender finance the loan.

Annual percentage rate

The ________ determines the cost of credit on a yearly basis.

Credit card companies

________ charge different fees for different services.