Types of Credit

the process of paying off a debt in regular installments over a period of time is known as ..

amoritiztion

the smallest amount you can pay each month to keep your credit card in good standing is called ___ but it is recommended that you pay your balance in full each month

minimum payment

___ is often considered a risky option for emergency cash because it needs to be repaid by your next paycheck and has a high interest rate

payday loan

to purchase your first home, you take out you ___

mortgage

a parent can add you as a __ on their credit account so you can build a credit history under supervision

authorized user

a car loan is an example of ___, where the loan is backed up by collateral. If payments are not made in time, the lender can seize the car itself

secured debt

when buying a new car, you are required to pay 20% of the car’s price upfront as an ___, reducing the amount he needed to borrow

down payment

the ___ is the amount of money you borrow from a lender

principal