Unit 5: Credit Vocabulary

The length of a loan: ____________________________

• term

• credit card

• minimum payent

• The total amount of a loan

Plastic card where you spend the bank's money and pay back over time with interest: ____________________________

• Credit Card

• Debit Card

• Gift Card

• Loyalty Card

The rate charged for borrowing money: ____________________________

• The rate charged for borrowing money

• Interest rate

• Loan fee

• Borrowing cost

A portion of the total cost paid up front/at the beginning: ____________________________

• Down payment

• Installment

• Interest

• Penalty

A detailed report of an individual's credit history: ____________________________

• Credit card

• Credit report

• APR

• Term

A statistical number that shows a person’s credit worthiness: ____________________________

• credit score

• interest rate

• loan amount

• debt ratio

Smallest amount you need to pay off the balance of your credit card each month: ____________________________

• Minimum payment

• Full balance

• Interest amount

• Late fee

Interest rate charged on a credit card or car loan balance ____________________________

• Minimum payment

• principal

• Annual Percentage Rate (APR)

• Credit limit on the card

What is the definition of Interest Rate?

• Interest rate is the cost of borrowing money.

• Interest rate is the amount of money saved in a bank.

• Interest rate is the percentage of tax applied to income.

• Interest rate is the fee charged for late payments.

What is the definition of Down Payment?

• Length of loan

• A portion of the total cost paid up front/at the beginning

• A type of insurance policy for property protection.

• A fee charged by a bank for account maintenance.