Types of Credit Vocab

A loan taken by individuals and businesses to make real estate purchases (home, land, business) without paying the entire value of the purchase up front

• Mortgage
• Principal
• Interest Rate
• Term
• Secured loan/debt

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.

• Debit card
• Principal
• Interest Rate
• Term
• Secured loan/debt

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

• Credit Score
• Principal
• Interest Rate
• Term
• Secured loan/debt

the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

• Credit
• Principal
• Interest Rate
• Term
• Secured loan/debt

something, usually money, owed by one party to another.

• Debt
• Principal
• Interest Rate
• Term
• Secured loan/debt

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

• Principal
• Interest Rate
• Term
• Secured loan/debt
• Variable rate loan

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

• Schumer Box
• Principal
• Interest Rate
• Term
• Secured loan/debt

The cost you pay each year to borrow money, including fees, expressed as a percentage

• Annual Percentage Rate (APR)
• Principal
• Interest Rate
• Term
• Secured loan/debt

A small loan, offered through a business, lent at a high interest rate that is usually hidden in fees, and meant to be paid as soon as you receive your next paycheck

• Payday loan
• Principal
• Interest Rate
• Term
• Secured loan/debt

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.

• Prepaid card
• Principal
• Interest Rate
• Term
• Secured loan/debt