Cash and Payments
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
Collateral
The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest
Amortization
A yearly fee that may be charged for having a specific credit card, independent of how you use the card
Annual Fee
The rate charged for borrowing money usually expressed as a percent of the amount borrowed
Interest Rate
Extend the term
A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee
Cash Advance
The amount you owe as the cost of borrowing money
Interest
A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest
Credit Card
The amount of time you have to repay your entire loan
Term
A way to get a new car more often, usually at a lower rate than buying one, but without ownership
Lease
The number of days between a borrower's statement date and when payment is due, often without accruing interest
Grace Period
Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal
Installment Loan
A legal document that outlines the terms and conditions for using your credit card
Credit Card Agreement
Original amount of money borrowed, separate from interest or fees
Principal
The two main ways you can get financing when purchasing a car
Direct financing - contacting lenders ahead of time
Dealer financing
A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan
Down Payment
A loan with an interest rate that does not change over the life of the loan
Fixed Rate Loan
The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
Minimum Payment
The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply
Introductory APR
This can happen if you don't pay your car loan
Repossession
A credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment toward their balance, reward points, travel miles, or gift cards
Cash Back
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
Cosigner
The maximum amount that may be borrowed on a credit card
Credit Card Limit
A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month
Adjustable Rate Mortgage ARM)
Loans like car loans and mortgages are this type of loan
Secured loan
What you should do if you can't make a payment
Contact your lender or the CC company
A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
Mortgage
The act of transferring debt from one credit card account to another, usually for a fee
Balance Transfer
The cost you pay each year to borrow money, including fees, expressed as a percentage
Annual Percentage Rate (APR)
Loans like personal loans are this type of loan
unsecured loan