Personal Finance Vocab 3

A yearly fee that may be charged for having a specific credit card, independent of how you use the card

• annual fee

• cash back

• authorized user

• collateral

A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill

• annual fee

• cash back

• authorized user

• collateral

Something valuable that the lender can take as payment if you can't or don't repay your secured loan

• annual fee

• cash back

• authorized user

• collateral

A credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment toward their balance, reward points, travel miles, or gift cards

• annual fee

• cash back

• authorized user

• collateral

A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan

• credit limit

• down payment

• cosigner

• credit card

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

• credit limit

• down payment

• cosigner

• credit card

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

• credit limit

• down payment

• cosigner

• credit card

The maximum amount that may be borrowed on a credit card

• credit limit

• down payment

• cosigner

• credit card

A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest

• overdraft protection

• joint account

• interest

• late payment fee

The amount you owe as the cost of borrowing money

• overdraft protection

• joint account

• interest

• late payment fee