Credit Vocabulary List

Question 1

ATM Cash Advance

Answer 1

Using your credit card to get cash from an automated teller machine.

Question 2

Balance Payer

Answer 2

Someone who pays off his or her entire credit card balance each month.

Question 3

Balance Transfer

Answer 3

Paying off one credit card balance by transferring it to another credit card.

Question 4

Credit

Answer 4

Borrowing money and promising to pay it back later.

Question 5

Credit Card Solicitations

Answer 5

Advertisements sent in the mail inviting you to apply for credit cards.

Question 6

Credit Cards

Answer 6

Plastic cards used to make purchases on credit.

Question 7

Credit Inquiry

Answer 7

A lender’s check of your credit rating.

Question 8

Credit Line

Answer 8

The maximum amount you can borrow on a credit card.

Question 9

Credit Rating ( History )

Answer 9

A detailed record of past borrowing and credit payments.

Question 10

Debit Cards

Answer 10

Plastic cards used to pay for purchases with funds you have in a bank account.

Question 11

Grace Period

Answer 11

Time period following your credit card statement date where no interest is charged if paid in full during grace period.

Question 12

Interest

Answer 12

Fee paid to a lender for use of money.

Question 13

Interest Rate

Answer 13

Annual percentage which when multiplied by your credit card balance equals the interest charge.

Question 14

Late Fee

Answer 14

Yearly fee charged by some credit cards.

Question 15

Loan Consolidation

Answer 15

Paying off all of your current loan balances by taking out new, large loan.

Question 16

Minimum Payment Amount

Answer 16

The minimum amount you must pay this month.

Question 17

Purchase Enalaber

Answer 17

Using a credit card to make transactions where you already have the money in the bank and will pay the bill off in full each month.

Question 18

Stores Credit Cards

Answer 18

Cards issued by specific stores, for use in that company’s stores only.

Question 19

Teaser Rates

Answer 19

Low, temporary interest rates offered by some credit cards.

Question 20

Late Fee

Answer 20

Fee charged for a late payment.

Question 21

Annual Fee

Answer 21

Yearly fee charged by some credit card companies.