Loan Terms
An asset that is security for a loan.
What is collateral?
Someone who receives a loan from a lender.
What is a borrower?
Betting money on an uncertain event.
What is gambling?
A loan to pay for education
What is a student loan?
Someone who agrees to make loan payments if the borrower can't.
What is a co-signer?
A number that represents your creditworthiness
What is a credit score?
Stealing someone's personal information to use it illegally.
What is identity theft?
A loan to buy a house
What is a mortgage?
The original amount borrowed, excluding interest.
What is principal?
The cost of borrowing money (APR)
What is interest?
Individuals who promote products or services on platforms.
What are social media influencers?
A short term high interest loan that must be repaid in 2 weeks
What is a Payday loan?
A large payment made upfront when buying a house or car.
What is a down payment?
The largest factor in determining your credit score
What is Payment History?
Your personal key to your financial information that should be guarded.
What is your social security number?
A type of loan that you can borrow and pay back and borrow again without reapplying.
What is Revolving Credit?
Character
Credit that has no collateral (Ex. student loans, credit cards.)
What is unsecured credit?
What are credit bureaus?
Loans repaid in regular, fixed payments over a set period
What are installment loans?