Loans
•A short-term, high-interest loan that usually must be repaid on the borrower's next payday.
What is a Payday Loan
•A security pledged for the repayment of a loan.
What is Collateral
What does PMI stand for?
What is Private Mortgage Insurance.
•Protects lenders if borrower stops making payments--borrower pays until 20% of loan value is paid
•money that by law must be accepted for payment of debts
What is Legal Tender
•Credit score from 300-850 that rates how likely a person is to fall 90 days behind in a payment.
What is a FICO Score
•Displays the interest and principal amounts for each payment of an installment loan.
What is amortization table
•a person who receives something good from someone else such as an inheritance
What is Beneficiary
The cost of credit on a yearly basis, expressed as a percentage is known as what?
What is Annual Percentage Rate (APR)
•a digital or virtual currency that uses encryption for security
What is Cryptocurrency
•The amount of debt a person or a household has in relation to his or her income. Lenders use this ratio to decide if more debt can be taken on by the borrower.
What is Debt to Income Ratio
•A loan with a rate that does not change over the life of the loan.
What is a fixed rate loan
•A nonprofit financial institution that is owned by its members and organized for their benefit.
What is a Credit Union
•non-essential spending...buying what you want, not need
What is Discretionary Spending
•A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
What is a Debit Card
•company that collects information about your credit history and sells it to lenders
What is a Credit Bureau
•An interest rate that may change depending on other factors, such as the prime rate
Variable Rate Loan
•person designated to execute the terms of a will
Executor
•Percentage of amount borrowed to be added to the amount loaned and paid back
What are interest rates
•Type of card issued by a bank that allows users to finance a purchase
What is a Credit Card.
•when you pay back money that you have borrowed
What is Repayment
•A loan of a certain amount of money that a borrower must repay in a specified number of equal payments.
What is Closed End Credit
•A line of credit established in advance so that a borrower does not have to apply for credit each time new credit is desired. Also known as revolving credit
What is open end credit
•A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
What is a Money Market Account
•a person who lends money at interest in exchange for personal property that is deposited as security
•company that collects information about your credit history and sells it to lenders
What is a Credit Bureau