Vocabulary
This is the amount of money you still owe on a loan or credit card.
Balance
The key difference between a credit card and a debit card.
Credit borrows money and debit uses your own money.
This is the amount you borrow on a loan.
Principal
This factor has the biggest impact on your credit score.
Payment History
This is the amount you must pay by the due date to avoid late fees.
This card pulls money directly from your checking account when you make a purchase.
Debit Card
The best way to avoid credit card debt.
Paying your full balance every month.
This is how long you have to repay a loan.
Loan Term
Having a high credit score helps you get this kind of interest rate.
Lower Interest Rate
On the sample statement, the new balance is this amount.
$380
This is a fee you pay for borrowing money.
Interest
When you only make this payment, interest continues to build on the remaining balance.
Minimum payment
The longer your loan term, the ______ you pay overall.
More
This factor compares how much credit you're using to how much you have available
Credit Utilization Rate
On the sample statement, the credit limit is this amount.
$1,500
This 3-digit number shows lenders how responsible you are with borrowing.
Credit Score
Using this type of card can help you build credit when someone else adds you to their account.
Authorized user
A benefit of borrowing from family or friends instead of a bank.
Flexible repayment or no interest
One thing a young person can do to start building credit.
Get a secured card, get a co-signer, or become an authorized user.
On the sample statement, the payment due date is this.
June 23
This type of credit card requires a cash deposit you must put down first.
Secured Credit Card
If you don’t pay your credit card bill in full by the due date, this cost increases.
Interest (or your total balance)
A possible con of borrowing money from a friend.
It may damage the friendship if not repaid.
This factor does NOT impact your credit score (from the unit test).
Bank account balance
How much interest the cardholder paid in that billing cycle.
$33.10