Credit and Debt

What’s inside

• What does an annual percentage rate (APR) primarily measure on a loan or credit card?
• Which action generally has the greatest positive effect on a borrower's credit score over time?
• What is credit utilization?
• What is the main risk of making only the minimum payment on a credit card balance?
• A loan backed by an asset that the lender may take if the borrower defaults is called a [____] loan.
• The amount originally borrowed, excluding interest and most fees, is called the [____].
• When a lender checks a person's credit for a loan application, the resulting inquiry is usually recorded as a [____]…
• A debt-management strategy that combines several debts into one new loan is known as debt [____].