Credit Basics
A card that can be used at only one type of store or business
Single-purpose cards
Cash withdrawn from a credit card
Cash Advance
Your credit history and account information
Credit Report
Being late on a loan or credit card payment
delinquency
The first payment you make upfront, typically on a car or home loan
Down payment
Money sent toward repaying a debt
Time between billing and due date when no interest is charged
A widely used credit scoring model
FICO
Something of value used to secure a loan
Collateral
Someone who agrees to repay the loan if you don’t
Cosigner
The maximum amount you can borrow on a credit card
Credit Limit
The smallest amount you must pay each month
minimum payment
A score representing your creditworthiness
Credit Rating/ Credit Score
The assets or money you have
Capital
A loan requiring collateral (something the bank will take if you fail to pay the loan)
Secured Loan
the person who borrows the money
Debtor
the person or institution that lends money
Creditor
Convenience, safety, rewards and building credit
Benefits of credit/ advantages of credit
Your ability to repay a loan using income
Capacity
A way to measure the yearly cost of borrowing
APR (Annual Percentage Rate)
The ability to borrow money now and repay it later
credit
The cost of borrowing money
interest
Overspending, debt, and high interest
Concerns of Credit, Disadvantages of credit
Your trustworthiness and payment history
Character
A type of loan that is paid in equal payments over time
Installment Loan