Credit- Economics
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12 Terms
Loan
Borrowing money to make a purchase
Principal
The original amount of money borrowed
Interest
Money that you pay in addition to the principal
Default
When you stop paying for several months in a row
Credit Score
A number that measures your financial health
The better your credit score..
The more likely you are to be approved for a loan
The worse your credit score…
The less likely you are to be approved for a loan
Debit Cards
Connected to your checking account
Credit Card
Issued by lending institutions that let you BORROW money
Interest Rate
A percentage of a sum that is borrowed
Pro of using a credit card
You can pay off large purchases over time
Con of using a credit card
You can easily go into debt because you do not see the money leaving
Note 
Flashcards (20)