Good grief, just give me some credit
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
What is a credit Card?
The amount you owe as the cost of borrowing money
What is Interest?
An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest
What is a Loan
A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
What is a mortgage?
The maximum amount that may be borrowed on a credit card
What is Credit Limit?
The rate charged for borrowing money usually expressed as a percent of the amount borrowed
What is Interest Rate?
A contract (often used for cars or property) by which one party gives property to another for a specified time, usually in return for a periodic payment
What is a lease?
A mortgage that has a fixed interest rate for the entire term of the loan as long as ontime payments are being made
What is a fixed rate mortgage?
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
What is Cash Back
Original amount of money borrowed, separate from interest or fees
What is Principal?
A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck
What is a payday Loan?
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
What is a down payment?
A prediction of how likely you are to pay a loan back on time based on information from your credit reports
What is a Credit Score?
The cost you pay each year to borrow money, including fees, expressed as a percentage
What is Annual Percentage Rate?
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
What is collateral?
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
What is an Adjustable Rate Mortgage?
A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees
What is a Schumer Box?
The typically low rate charged for a brief time after a credit account is opened, after which the regular, typically higher, APR will apply
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
What is Amortization?
The value of ownership built up in a home or property that represents the current market value of the house minus any remaining mortgage payments
What is Home Equity?