Studied by 4 people
Looks like no one added any tags here yet for you.
simple interest
interest paid on the principal alone
principal
Amount of money in an account, or taken out in a loan.
Minimum Balance
The smallest amount of money you can have in your account without being charged fees:
Finance Charges/Fees
The dollar amount you pay to use credit
down payment
Money paid toward the purchase of the item financed.
850
What is a the highest credit rating?
300
What is the lowest credit rating?
Payment History
A history of the payments you have made on all credit you have obtained, which affects your
credit score. Tracks such things as whether or not you pay your bills on time.
Bankruptcy
Legally declared insolvency, or inability to pay creditors.
Balance
An amount available in or owed on an account
Credit Score
A number assigned to an individual that quantifies their ability to use and pay back credit
Credit Report
A detailed list of the factors contributing to your credit score, including open accounts and payment histories
Debt- to Income Ratio
A calculation that divides the debt you have by the amount of money you make. This gives you a percentage that helps lenders decide your ability to pay back a loan
Debit Card
a payment card that can be used to make purchases; the cost is paid directly from the holder's bank account
Credit Card
A plastic card used to make purchases now and pay for them later.
FDIC
Federal Deposit Insurance Corporation: A federal organization that guarantees bank deposits up to $250,000
APY
Annual Percentage Yield
Credit Cards
a card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Secured Loan
Loan that is backed up by collateral
Collateral
something pledged as security for repayment of a loan, to be forfeited if you do not repay your loan.
Unsecured Loan
a loan that doesn't require any collateral
Pay Day Loans
money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.
Schumer Box
Terms and fees of a credit card in an easy to read box on all credit card applications and solicitations
Installment Loan
A loan provided for specific purchases, with interest charged on the amount borrowed. It is repaid on a regular basis.
Fixed Rate Loan
A loan with an interest rate that does not change over the life of the loan
Variable Rate Loan
the interest rate goes up and down based on inflation and other economic conditions
Debit Card
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Credit Score
A measure of an individual's credit risk; calculated from a credit report using a standardized formula
Overdraft Fee
A fee charged to your checking account when you spend more money than you have.
Certificate of Deposit
A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.
Compound interest
interest earned on both the principal amount and previously earned interest.
Outstanding balance
the amount you owe on your credit card. This amount is used to calculate payments on which interest is charged.
Note 
Flashcard (25)