Personal Finance Quiz Flashcards
Opportunity Cost
What you don’t allow yourself to spend when you start saving up for money
Late Payment Fee
charged when a cardholder does not make the minimum monthly payment by the due date
Over the Limit Fee
charged if the account balance does over the set credit limit
APR
(Annual Percentage Rate): The cost of credit expressed as a yearly interest rate
Cash Advance
Discloses the interest paid for cash advances, such as withdrawing cash from an ATM using a credit card. Cash advance fees may also apply
Balance Transfer
the act of transferring debt from one credit card account to another
Prime Rate
an index that represents the interest rate most banks charge their most creditworthy customers
Introductory Rate
The APR charged during the credit card’s introductory period after a credit card account is opened. The card will have a different APR after the introductory period ends
Credit Score
A number that summarizes an individuals credit record and history. It is a numeric grade of a consumers financial reliability
Credit Report
A record of a consumers credit history that includes information about credit card use as well as other types of credit, such as auto loans, student loans and mortgages
Minimum Payment
You’re required to make a minimum payment each month(2.5-5% of total balance due..
Lender
The person or organization who has the resources to provide the individual with a loan
Borrower
The person or organization that is receiving the money from the ladder
Credit
When goods, services, or money is received in exchange for a promise to pay a definite sum of money at a future date.
Interest
When referring to credit, interest is the charge for borrowing money.
