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credit cards
credit card notes
Term | Definition |
---|---|
credit | a promise to pay a definite sum of money at a future date |
lender | Person or Organization that provides the loan. Bank, Credit |
Borrower | Person who get the money on as a loan |
Creditworthiness | ability and willingness to pay money back |
Principal | The amount of money you borrow ($1,000) |
Interest | The price a lender charges you to borrow money (20%) |
Closed Ended Credit | Borrower must repay in specified number of payments. 5 years for a car, 30 years for house |
Installment credit | # of payments (5 years 60 months) + Interest (APR or rate) |
Character | The way you handle money and have repaid debt in the past. |
Capacity | Your ability to pay the debt after considering other monthly expenses. |
Capital | The value of your assets or what you own. |