FoolProof Module 2 questions and answer 2023

FoolProof Module 2 questions and answ er 2023 Annual Percentage Rate (APR) - Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan. Authorized User - A person who has permission to use and/or carry another person's credit card, but isn't leg ally responsible for paying the bill. Bankruptcy - A legal process to get out of debt when you can no longer make all your required payments Collateral - Something valuable that the lender can take as payment if you can't or don't repay your secured loan Co-Signer - Someone who legally agrees to take responsibility for a person's debt if they cannot repay it Credit - The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. Credit Bureau - Company that collects information about your credit history and sells it to lenders Credit History - A summary of a person's borrowing and repayment history Credit Limit - The maximum amount that may be borrowed on a credit card Credit Report - A document containing an individual's financial information focusing on payment of their credit obligations over time Credit Score - A three -digit number (ranging from 300 -850) based on an individual's credit history detailed in a credit report Installm ent Loan - Borrowing a specific amount and repaying the loan over a fixed number of payments Interest - The price paid for the use of borrowed money FICO Score - The most commonly used credit score Loan - An amount of money given to the borrower for a set period of time and must be paid back with interest