credit vocab Flashcards
co-signer
someone who legally takes responsibility for a persons debt if they cannot repay it
secured credit card
a type of credit card that requires the borrower to pay the company a fixed upfront amount of money as collateral, which becomes the credit limit of the card
delinquent
accounts past due, required payment not made to creditor
principal
original amount of money borrowed
penalty apr
a higher interest rate triggered by being late with or missing a credit payment
balance transfer
the act of transferring debt from one credit card to another, usually for free
credit card agreement
a contract that outlines the terms and conditions for using your credit card
unsecured debt
debt not tied to a specific asset
unable to take something if debt is not paid
interest rate
the rate charge for borrowing money
usually expressed as a percent of the amount borrowed
phishing
a criminal technique that uses computers to steal credit or debit card or bank info
statement
a monthly record of your account transactions provided by your credit card company
authorized user
a person who has permission to use or carry the credit card but doesn’t have to pay the bill
cash advance
a credit card service that allows cardholders to with draw a certain amount of cash, either through tan atm or directly from the bank
grace period
the number of days between a borrowers statement date and when payment it due
joint account
a bank or credit account that is shared between two or more individuals which allows everyone named on the account to access the funds
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
revolving credit
an open line of credit that can be used for any purchases as long as you are under the limit
annual fee
a yearly fee that may be charged for having a credit card, independent of how you use the card
shumer box
a standard table that legally must appear in a credit card agreement showing basic info ab the card and rates
credit card
A plastic card that allows you to make purchases now with borrowed money which u must repay
interest
the amount you owe as a cost of borrowing money
collateral
something valuable the lender can take if you don’t repay the loan
down payment
a partial payment that is paid in cash at the beginning of the purchase of a food or service while the rest is due later
introductory apr
the typically lower rate charged during the introductory period after a credit account is opened after which the regular, typically higher APR will apply
Secured debt
Death tied to a specific, tangible asset that can be used as collateral in repossessed if payments are not made
cash back
A credit card benefit that pays the card holder, a small percentage of their net expenditures spent often in cash payment towards their balance, reward, points, travel miles or a gift card
Late payment fee
A fee charged if your payment is received later than the due date
transaction
A fee assessed for using a credit card for certain types of transactions
Due date
The maturity date or the date your payment is due
Credit limit
The maximum amount that may be borrowed on a credit card
