Basics
A person who receives borrowed money and must pay it back.
Borrower
Extra money you owe if you miss a payment.
Late Fee
What extra charges are called.
Fees
A card that lets you borrow money up to a limit to make purchases.
Credit Card
A card that uses money directly from your checking account to pay for purchases (NOT a credit card)
Debit Card
A company or bank that gives you money to borrow.
Lender
Important details that are easy to overlook but affect the deal.
Fine Print
Paying a bill by its due date.
On-time payment
The maximum amount you are allowed to borrow on a card.
Credit Limit
A ______ deal costs less over time; a ________ deal costs more than it first appears.
Good, Bad
The act of using money now that you agree to pay back later.
Borrowing
A payment option where you get an item right away and pay for it over time.
Buy Now, Pay Later (BNPL)
Paying after the due date, which can hurt your credit score.
Late payment
A financial action that raises or lowers a credit score.
Credit Event
Benefits you earn for spending, like cash back, points, or miles.
Rewards
The ability to borrow money with the promise that you'll repay it.
Credit
One of several smaller payments that make up the full cost of a purchase.
Installment
The smallest amount you must pay each month to stay in good standing.
Minimum payment
Credit History
The length of time you're given to pay your bill in full before charges start.
Grace Period
The term for what you already own or have saved.
Capital (also: Assets, Net Worth)
Two things lenders look at when considering loaning you money: Your _________, how trustworthy you are to pay on time, and your __________, your actual ability to repay.
Character, Capacity.
Extra money you pay for borrowing.
Interest
A number that shows how risky it is to lend you money.
Credit Score
The yearly cost of borrowing money, shown as a percent.
APR (Annual Percentage Rate)