Types of Credit Vocab

Front

Original amount of money borrowed (the actual amount of money needed for the loan), separate from interest or fees

Back

Principal

Front

The rate charged for borrowing money usually expressed as a percent of the amount borrowed.

Back

Interest Rate

Front

The amount of time you have to repay your entire loan

Back

Term

Front

Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made

Back

Secured loan/debt

Front

a number assigned to a person that indicates to lenders their capacity to repay a loan.

Back

Credit Score

Front

A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan

Back

Variable rate loan

Front

A card that lets you spend money from your checking account without writing a check. You can use this to buy things in a store and get cash from an ATM.

Back

Debit card

Front

A card you can use to pay for things. You buy a card with money loaded on it. Then you can use the card to spend up to that amount.

Back

Prepaid card

Front

A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest.

Back

Credit card

Front

A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees.

Back

Schumer Box