Personal Finance Vocabulary Cloze worksheet with credit card and mortgage sections, including a Visa Classic card and a house illustration.

Let’s go step by step to fill in the blanks using the vocabulary words provided.

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First section: Credit Cards

Vocabulary list for this part:
- limit
- default
- afford
- cash advance
- funds
- debt
- purchase
- pay back
- interest

Now, read each sentence and pick the best word that fits.

1. “Credit cards are a convenient way to ______ goods.”
→ You use credit cards to buy things → purchase

2. “They also come in handy when you have a shortage of ______.”
→ Shortage of money → funds

3. “If you need a little extra money for the weekend, you can take out a ______ ______.”
→ This is a specific term for getting cash from your credit card → cash advance

4. “In spite of these benefits, credit card ______ can also cause serious problems for people.”
→ The problem comes from owing too much → debt

5. “People spend more than they can ______.”
→ Spend beyond what they can handle financially → afford

6. “And because of the high ______ on money borrowed...”
→ What you pay extra for borrowing money → interest

7. “...the credit card debt becomes harder and harder to ______ ______.”
→ You have to return the money you borrowed → pay back

8. “Eventually, some people are forced to ______ on their payments.”
→ When you stop paying → default

9. “This is why credit card companies put a ______ on the amount that people can borrow.”
→ A maximum allowed amount → limit

✔ So far, we’ve used: purchase, funds, cash advance, debt, afford, interest, pay back, default, limit

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Second section: Mortgages

Vocabulary list for this part:
- credit risk
- afford
- mortgage
- co-sign
- savings
- default
- credit evaluation

Read each sentence:

1. “Most people don’t have enough in ______ to purchase a house...”
→ Money saved up → savings

2. “...so they take out a house loan, which is called a ______.”
→ House loan = mortgage

3. “Before you get a mortgage, the bank will do a thorough ______ ______ to make sure you can ______ the loan.”
→ Bank checks if you’re trustworthy with money → credit evaluation
→ And checks if you can handle the payment → afford

4. “If the bank feels you are a ______ ______ they may ask you to find somebody else to ______ your mortgage.”
→ If you seem risky → credit risk
→ Someone else signs with you → co-sign

5. “This person will be responsible to pay your mortgage if you ______.”
→ If you fail to pay → default

✔ Used: savings, mortgage, credit evaluation, afford, credit risk, co-sign, default

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All blanks filled correctly!

Final Answer:

Credit Cards Section:
1. purchase
2. funds
3. cash advance
4. debt
5. afford
6. interest
7. pay back
8. default
9. limit

Mortgages Section:
1. savings
2. mortgage
3. credit evaluation
4. afford
5. credit risk
6. co-sign
7. default