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Types of Credit Exam Questions and Answers Fully Solved Latest Version 2025 Amortization - Answers The paying off of debt with a fixed repayment schedule in regular installments over a period of time collateral - Answers Something valuable that the lender can take as payment if you can't or don't repay your secured loan Direct Subsidized Loans - Answers A student loan that the federal government pays interest on as long as the student is in school at least half-time Direct Unsubsidized...

TYPES OF CREDIT EXAM QUESTIONS WITH COMPLETE SOLUTIONS Collateral - Answer-Something valuable that the lender can take as payment if you can't pay back your loan (like a house or car) Co-signer - Answer-Someone who legally agrees to take responsibility for a person's debt if they cannot repay it Installment loan - Answer-Loan used to finance a specific purchase for a specific amount of time; regular payments pay the interest and portion of the principal Revolving credit - Answer-...

Types of Credit Questions and Answers Latest Version (2024/2025) Graded A+ What is a credit score used for? A credit score is used by lenders to determine a borrower's creditworthiness and the likelihood of them repaying debt. What is a credit card? A credit card allows the cardholder to borrow funds from a bank or financial institution to make purchases, with the option to pay back over time. What is the difference between a secured and unsecured loan? A secured loan is ...

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Credit Any arrangement where you get "stuff" (money, goods, services), and agree to pay for it in the future Loan An agreement where you are credited with a fixed amount (usually of money) for a fixed period of time, usually with interest Interest Rate The percentage charged for the privilege of borrowing money Principal The amount you borrow Term The amount of time you have to repay your principal Collateral Master01 | October, 2024/2025 | Latest update 1 | P a g e | ...

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