click below
click below
Normal Size Small Size show me how
Credit vocabulary
| Question | Answer |
|---|---|
| Character | reputation for paying debts on time |
| Capacity | ability to pay debts |
| Capital | net worth of a person |
| Character/Capacity/Capital | three Cs of credit |
| Annual Fee | yearly charge similar to a membership fee |
| Annual Percentage Rate | the cost of credit expressed as a yearly rate |
| Finance Charge | the dollar amount paid to use credit; includes interest and all charges associated |
| Periodic Rate | the interest rate the card issuer applies to your outstanding account balance to figure the finance charge for each billing cycle |
| Transaction Fees | some credit card issuers charge a fee for a cash advance, late payment and exceeding your credit limit |
| Creditor | person who lends money or sells goods based on another person’s promise to pay later |
| Debtor | person who borrows money or buys goods promising to pay later |
| Credit Rating | evaluation of one’s ability and willingness to pay debts |
| Credit History | report of your financial transactions |
| Credit Bureau | agency that provides information about one’s credit history to businesses |