Borrowing
The amount of money that you still owe on a loan or credit card
What is a Balance?
Use this card to borrow money for purchases, but make sure to repay it later
What is a Credit Card?
A three-digit number that shows how trustworthy you are when borrowing money
What is a Credit Score?
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 a Minimum Payment?
A plan of your expected income and how you will use it to meet your expected expenses over a period of time
What is a Budget?
The length of time you have to repay a loan, usually stated in months or years
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 record of a person's use of credit over time (HINT: 15% of your credit score is based on this)
What is Credit History?
A monthly summary that shows all the purchases, payments, interest, and fees on your credit card account.
What is a Credit Card Statement?
Money that is received from work, investments, business, etc.
What is Income?
The original amount of money saved or invested, separate from interest or earnings
What is Principal?
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
What is Co-Signer?
A comprehensive record of your credit history prepared by credit bureaus
What is a Credit Report?
This functions a lot like a traditional credit card. The primary difference is that with this card, you pay a cash deposit upfront to guarantee your credit line.
What is a Secured Credit Card?
Items or services you pay for such as rent, groceries, entertainment, bills, etc.
What are Expenses?
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?
The fee you pay to borrow money, written as a percentage
What is Interest Rate?
A measurement of your outstanding debt divided by your total available credit (HINT: a general rule of thumb is to keep this under 30%)
What is the Credit Utilization Rate?
A schedule for how you will pay back money you owe, including the amount and due dates for each payment
What is a Repayment Plan?
Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions
What is a Deduction?