c words
generally operates as a substitute for cash or a check and most often provides an unsecured revolving line of credit. The borrower is required to pay at least part of the outstanding balance each billing cycle, depending on the terms as set forth in the contractual agreement
What is credit card
a computerized electronic machine that performs basic banking functions and financial transactions (such as handling check deposits or issuing cash withdrawals)
What is ATM
a financial liability or obligation owed by one person, the debtor, to another, the creditor
What is debt
wages withheld from an employee's paycheck for the payment of taxes, benefits, or garnishments
a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities
What is tax
a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports; a number from 300 to 850 that rates a consumer's creditworthiness
What is credit score
an increase in the value of an asset
What is appreciation
the decrease in the value of an asset
What is depreciation
for an individual, it is your total income minus taxes and any other deductions
What is net income
an expenditure that is essential for you to be able to live and work
What is need
the maximum amount of money a lender will allow you to spend on a credit card or a line of credit
What is credit limit
anything that an individual or business owns that has monetary value and can be sold for cash
What is asset
an initial up-front partial payment for the purchase of expensive items/ services, such as a car or a house
What is down payment
an expense in your budget that you can expect to stay the same, or close to it, over time
What is fixed expense
things that are nice to have but not absolutely necessary
What is want
a contractual agreement in which a borrower receives something of value immediately and agrees to pay for it later, usually with interest
What is credit
the process of paying off a debt through scheduled, pre-determined installments that include principal and interest
What is amortization
a payment card that deducts money directly from a consumer's checking account when it is used
What is debit card
a source of ready cash in case of an unplanned expense, an illness, or the loss of a job
What is emergency fund
a sum of money that one or more individuals or companies borrow from banks or other financial institution
What is loan
something pledged as security for repayment of a loan, to be forfeited in the event of a default
What is collateral
the total annual cost of borrowing money with a credit card or installment loan
What is APR
placing money into the care of a banker or other financial institution
What is deposit
an individual's total earnings before taxes or other deductions
What is gross income
payment made by an employer to an employee for work done in a specific period of time
What is wage