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Types of credit voc
| Amortization | The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest |
| Annual Fee | A yearly fee that may be charged for having a specific credit card, independent of how you use the card. |
| Annual Percentage Rate (APR) | The cost you pay each year to borrow money, including fees, expressed as a percentage. |
| Authorized User | A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill. |
| Collateral | Something valuable that the lender can take as payment if you can't or don't repay your secured loan. |
| Credit Card | A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest. |
| Credit Card Agreement | A legal document that outlines the terms and conditions for using your credit card. |
| Credit Limit | The maximum amount that may be borrowed on a credit card. |
| Debit Card | A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check. |
| Down Payment | A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan. |
| Fixed Rate Loan | A loan with an interest rate that does not change over the life of the loan. |
| Grace Period | The number of days between a borrower's statement date and when payment is due, often without accruing interest. |
| Installment Loan | Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal. |
| Interest | The amount you owe as the cost of borrowing money. |
| Interest Rate | The rate charged for borrowing money usually expressed as a percent of the amount borrowed. |
| Late Payment Fee | A fee charged if your payment is received after the due date. |
| Lease | A contract (often used for cars or property) by which one party gives property to another for a specified time, usually in return for a periodic payment. |
| Loan | An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest. |
| Minimum Payment | The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender. |
| Mortgage | A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front. |
| Payday Loan | A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck. |
| Peer To Peer Lending | A method of debt financing that enables individuals to borrow and lend money without the use of a financial institution as an intermediary. |
| Prepaid Debit Card | A card that is loaded with a specific cash amount before you use it. It is not linked to a bank or credit union account. |
| Principal | Original amount of money borrowed, separate from interest or fees. |
| Personal Loan | A type of loan issued by a bank, credit union or online lender that you pay back in fixed monthly payments, typically over two to seven years. |
| Point of Sale (POS) | A place where a customer makes the payment for goods or services and where sales taxes may become payable. The transaction can take place through a physical device or online through a digital system. |
| Revolving Credit | An open line of credit that can be used for any purchases as long as you are under the limit; its payments vary monthly based on size of the debt. |
| Schumer Box | A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees. |
| Secured Credit Card | A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral, which becomes the credit limit of the card, thereby making it low-risk to the credit card company |
| Secured Debt | Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made. |
| Small Business Loan | A loan used to fund expenses connected with operating a small business. |
| Term | The amount of time you have to repay your entire loan. |
| Unsecured Debt | Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made. |
| Variable Rate Loan | A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan. |
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lohrj
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