Credit
This allows you to buy goods and services now and pay for them later.
What is credit.
What is APR?
What is Annual Percentage Rate
Allows the borrower to use a certain amount of money for an indefinite period of time.
What is open-end credit.
What is creditworthy.
If you don't pay at least this much, the card issuer can charge you a late fee.
A legally binding agreement between the borrower and the creditor.
What is a contract.
This refers to a loan that must be repaid with finance charges by a certain date.
What is closed-end credit.
This offers you a choice of paying in full each month or spreading payments over a period of time. It's a type of open-end credit.
What is revolving credit account.
This is a record of a person's credit history and financial behavior. It includes every credit account ever opened and outstanding balances on current credit accounts.
What is a credit report.
What are three economically sound reasons to have a credit card?
builds credit, provides security, potential rewards from the credit card company (think cashback or travel rewards cards)
The party that supplies money, goods, or services to another party for use with later payment.
What is a creditor.
A responsible person who signs a loan with you.
What is regular charge account.
This is a word used for late payments or overdue taxes.
What is delinquent.
The time between the billing date and the start of interest charges.
What is a grace period.
Failure to pay back debt.
What is default.
A loan that requires collateral.
What is secured loan.
What are three things that affect how much you will end up paying back for money borrowed?
Amount borrowed
Interest rate
Amount of time
What are the 3 C's of credit rating?
What is character, capacity and capital
Credit cards offered to people who have a poor credit history.
What are subprime credit cards.
The amount borrowed
What is principal.
Property that a borrower promises to give up in case of default
What is collateral.
What is an installment loan.
What is the numerical representation of your credit rating?
What is your credit score.
An interest rate that stays the same
What is fixed interest rate.