Quizziz CREDIT CAME WORK IN PROGRESS

I.INSTALLMENT VS REVOLVING

CREDIT GAME

INSTALLMENT:

● Finance a specific purchase for a specific amount of time.

● Regular monthly payments made to the interest first, then the principal.

REVOLVING

● Open line of credit used for any purchase as long as it is under the limit.

● Payment amounts vary monthly based on the debt size.

II. SECURED VS UNSECURED

CREDIT GAME

SECURED:

● Debt is tied to a specific asset that can be used as collateral and
repossessed for nonpayment

UNSECURED

● Debt is NOT tied to a specific

asset; there is no collateral that
can be repossessed for nonpayment

III. VARIABLE VS FIXED-RATE

CREDIT GAME

VARIABLE:

● Interest rate can change during

the length of the loan based on
prime or an index rate

FIXED

● Interest rate remains constant

throughout the length of the
loan