Credit Cards
a yearly fee that may be charged for having a credit card, whether or not you use it
what is ANNUAL FEE?
This can happen if you don't make your auto loan payments
What is REPOSSESSING YOUR CAR?
The act of transferring debt from one credit card account to another, usually for a fee
What is a BALANCE TRANSFER?
A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral, which becomes the credit limit of the card
What is a secured credit card?
How you avoid paying interest on a credit card
What is PAYING THE BALANCE IN FULL?
The amount you owe as the cost of borrowing money
What is interest?
What is considered "bad debt"?
Bad debt is typically high-interest debt used to buy things that quickly lose value (depreciate), such as consumer goods, electronics, or vacations.
The maximum amount that may be borrowed on a credit card
What is the CREDIT LIMIT?
The number of days between a borrower's statement date and when payment is due, often without accruing interest
What is the GRACE PERIOD?
You must give the car back when this expires
What is a CAR LEASE?
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 CASH ADVANCE?
The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply
What is the INTRODUCTORY APR?
One of these takes payment directly from your checking account, the other is a promise to pay later
What is a DEBIT CARD and a CREDIT CARD?
Name a type of secured loan.
What is an AUTO LOAN or MORTGAGE LOAN?
What is the main characteristic of "good debt"?
Good debt is used to purchase an asset that has the potential to appreciate (increase) in value over time or increase your long-term earning potential.
A higher interest rate triggered by being late with or missing a credit card payment
What is PENALTY APR?
A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
What is an AUTHORIZED USER?
Before taking on any financial obligation or debt, you should always read the ______________
What is THE FINE PRINT?
The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
What is the MINIMUM PAYMENT?
Open line of credit that can be used for any purchases as long as you are under the limit and that's payments vary monthly based on size of the debt
What is REVOLVING CREDIT?