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This term is derived from the Latin word for "Trust" and largely means borrowed money, goods, or services with a contingent of future payment.
Credit
Someone who asks for someone else's money.
Borrower
This is the cost of borrowing money from a lender.
Interest
How many payments will I have to make if i have precisely 3.5 years left on my loan?
42
This is a percentage given by lenders of credit that includes interest AND any other fees a customer may incur.
APR
This is a day-to-day payment method that does not come from ones own savings, but rather from borrowed money from a lender
Credit Cards
This is any type of valuable asset that is pledged to a lender in order to secure a loan.
Collateral
This is a numerical indicator of your creditworthiness that is tracked by three independent bureaus.
Credit Score
Someone who has extra money to give out to others who need it.
Lenders
This is the unit of time that borrowing is measured in when using formulas
Years
This refers to the amount of times interest is charged to an account over a year.
Compounding periods
This refers to the amount of money you need to borrow from the bank. (or the initial amount of an investment)
Principal
These are extra charges that a borrower may incur if they make late payments, move funds from atms, or bounce debt from 1 line of credit to another.
Fees
This is a yearly cost someone may have to pay when they sign up with certain credit cards.
Annual Fee
What is the most common range of credit scores?
300-850
You receive this on a monthly basis and it gives you a snapshot of your credit spending over the last few weeks.
Credit report
This type of interest doesnt just charge based on the principal but rather the principal AND the accumulated interest as well.
Compounding Interest
This aspect of credit score calculation refers to how long someone has been borrowing money for.
Credit History
This is the name given by credit card companies to their financially responsible customers. (who don't carry a balance from month to month)
Deadbeats
Another name for financial resources (assets)
Capital
This type of credit represents fixed interest rate borrowing like auto loans, mortgages, and small business loans, often with fixed monthly payments.
Installment Credit
This refers to ones ABILITY to pay back a loan, and adds to ones creditworthiness.
Capacity
This is the specific name given to interest that compounds multiple times a year
Regular Compound Interest
This type of credit refers to variable interest rate borrowing where payments are more dependent on account balances.
Revolving Credit
What was the first credit card (that launched in Fresno, CA)?
Bank AmeriCard