C&f L Chapter4 Flashcards
Annual percentage rate
Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan
Annual fee
A yearly fee that’s charged by the credit card company for the convenience of the credit card.
Credit card
Type of card issued by a bank that allows users to finance a purchase.
Credit report
A detailed report of an individual’s credit history.
Credit score
A measure of an individual’s credit risk; calculated from a credit report using a standardized formula.
Debt snowball
Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest
Depreciation
A decrease or loss in value.
Introductory rate
An interest rate charged to a costumer during the early stages of a loan; the rate often goes up after a specified period of time.
Loan term
Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term.
Tax deduction
An expense, such as a charitable contribution, that can be deducted from one’s taxable income
