credit vocab

Question 1

co-signer

Answer 1

someone who legally takes responsibility for a persons debt if they cannot repay it

Question 2

secured credit card

Answer 2

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

Question 3

delinquent

Answer 3

accounts past due, required payment not made to creditor

Question 4

principal

Answer 4

original amount of money borrowed

Question 5

penalty apr

Answer 5

a higher interest rate triggered by being late with or missing a credit payment

Question 6

balance transfer

Answer 6

the act of transferring debt from one credit card to another, usually for free

Question 7

credit card agreement

Answer 7

a contract that outlines the terms and conditions for using your credit card

Question 8

unsecured debt

Answer 8

debt not tied to a specific asset
unable to take something if debt is not paid

Question 9

interest rate

Answer 9

the rate charge for borrowing money
usually expressed as a percent of the amount borrowed

Question 10

phishing

Answer 10

a criminal technique that uses computers to steal credit or debit card or bank info

Question 11

statement

Answer 11

a monthly record of your account transactions provided by your credit card company

Question 12

authorized user

Answer 12

a person who has permission to use or carry the credit card but doesn’t have to pay the bill

Question 13

cash advance

Answer 13

a credit card service that allows cardholders to with draw a certain amount of cash, either through tan atm or directly from the bank

Question 14

grace period

Answer 14

the number of days between a borrowers statement date and when payment it due

Question 15

joint account

Answer 15

a bank or credit account that is shared between two or more individuals which allows everyone named on the account to access the funds

Question 16

minimum payment

Answer 16

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

Question 17

revolving credit

Answer 17

an open line of credit that can be used for any purchases as long as you are under the limit

Question 18

annual fee

Answer 18

a yearly fee that may be charged for having a credit card, independent of how you use the card

Question 19

shumer box

Answer 19

a standard table that legally must appear in a credit card agreement showing basic info ab the card and rates

Question 20

credit card

Answer 20

A plastic card that allows you to make purchases now with borrowed money which u must repay

Question 21

interest

Answer 21

the amount you owe as a cost of borrowing money

Question 22

collateral

Answer 22

something valuable the lender can take if you don’t repay the loan

Question 23

down payment

Answer 23

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

Question 24

introductory apr

Answer 24

the typically lower rate charged during the introductory period after a credit account is opened after which the regular, typically higher APR will apply

Question 25

Secured debt

Answer 25

Death tied to a specific, tangible asset that can be used as collateral in repossessed if payments are not made

Question 26

cash back

Answer 26

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

Question 27

Late payment fee

Answer 27

A fee charged if your payment is received later than the due date

Question 28

transaction

Answer 28

A fee assessed for using a credit card for certain types of transactions

Question 29

Due date

Answer 29

The maturity date or the date your payment is due

Question 30

Credit limit

Answer 30

The maximum amount that may be borrowed on a credit card