Shared Flashcard Set

Details

Credit
N/A
20
Finance
11th Grade
12/05/2011

Additional Finance Flashcards

 


 

Cards

Term
APR
Definition
annual percentage rate
Term
credit
Definition
making purchases now and paying for them later (also known as borrowing)
Term
credit card
Definition
a plastic card used to make purchases now and pay for them later
Term
creditor
Definition
any bank or business that extends credit to others; a lender
Term
debtor
Definition
anyone who owes money; a borrower
Term
interest rate
Definition
the fee, expressed as a percentage, a borrower owes for the use of a creditor's money.
Term
introductory rate
Definition
a temporary interest rate, advertised as a low APR to entice customers to apply for a credit card. After the introductory period, the interest rate will increase to the regular APR.
Term
late fees
Definition
additional fees that can be added to a credit card bill if the card holder fails to make at least the minimum payment by due date.
Term
minimum payment
Definition
the smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender.
Term
principal
Definition
the amount of money borrowed.
Term
bankruptcy
Definition
when a debtor's assets are sold to settle unpaid debts & the debtor is no longer responsible for further debt beyond what was recovered.
Term
credit history
Definition
a summary of a person's borrowing and repayment history.
Term
credit report
Definition
a report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and saving balances.
Term
Fair Credit Reporting Act
Definition
federal law giving consumers the right to view and correct their credit information
Term
FICO score
Definition
Credit score from 300-850 that rates how likely a person is to fall 90 days behind in payment.
Term
foreclosure
Definition
when a bank takes back a property and auctions is off to recover the unpaid loan amount.
Term
installment loan
Definition
loan with equal number of payments of the same amount over a fixed period of time
Term
lien
Definition
a promise to reclaim an item bought with loaned money if the loan is not repaid
Term
grace period
Definition
length of time you have to make a payment before you start accumulating interest
Term
over-the-limit-fee
Definition
you are charged this when you spend over your set credit limit
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