1. ___________________ is an arrangement by which a buyer can take
possession of something now and pay for it in the future, usually with interest.
2. Credit enables __________________ to start up and expand.
3. Common forms of consumer credit include personal loans,
_____________________ (home loans), and credit cards.
4. Taking out a loan or buying something on credit can cause a financial
___________________ if a person borrows or spends too much.
5. The lender keeps a claim to the _______________, or ownership, of a car or
house until the entire debt is paid. If the buyer fails to make payments, the
lender can __________________ (take possession of) the item.
6. It is best to pay the ________________ amount owed when the credit card bill
arrives. Making just the _________________ payment each month can lead to
additional debt and can cause financial ruin.
7. Making payments on time and in full is important to a person’s credit
8. Based on credit history, each individual earns a credit ________________ (a
number assigned to a person that indicates his or her capacity to repay a loan).
9. Financial institutions and businesses check credit ________________ to decide
whether or not a person qualifies for a loan or a credit card and, if so, how
_________________ that person deserves.