LOANS
A loan with an interest rate that does not change over the life of the loan
What is a Fixed-Rate Loan?
The maximum amount that may be borrowed on a credit card
What is a 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?
10% of $6,500
What is $650?
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?
The cost you pay EACH YEAR to borrow money, including fees, expressed as a percentage
What is the APR (Annual Percentage Rate)?
A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check
What is a Debit Card?
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?
30% of $120
What is $36?
The amount of time you have to repay your entire loan
What is the Term of the Loan?
The number of days between a borrower's statement date and when payment is due, often without accruing interest
What is the Grace Period?
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
What is a cosigner?
A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest
What is Overdraft Protection?
4% of $900
What is $36?
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
What is collateral?
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
What is a Cash Advance?
An open line of credit that can be used for any purchases as long as you are under the limit; its payments vary monthly based on size of the debt
What is Revolving Credit?
A monthly record of your account transactions provided by your credit card or loan company electronically or on paper
What is a Statement?
The longer the term of a loan, the _____ the total interest.
What is HIGHER?
A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan
What is an Adjustable Rate or Variable Rate Loan?
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?
A loan not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made
What is an Unsecured Loan?
Original amount of money borrowed, separate from interest or fees
What is the Principal?
The longer the term of a loan, the ______ the monthly payment