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Credit & Credit Scor
Budget & Banking
| Question | Answer |
|---|---|
| Annual Fee | A yearly, non-negotiable charge applied by credit card issuers for holding a specific, often rewards-heavy, credit card. |
| Annual Percentage Rate (APR) | The total yearly cost of borrowing money, expressed as a percentage, which includes both the interest rate and additional fees |
| Balance Transfers | A balance transfer moves a balance from a credit card or loan to another credit card. |
| Bankruptcy | The legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts |
| Cash advances | A short-term loan that allows you to borrow cash against your credit card’s available line of credit, usually via an ATM or bank. |
| Co-signer | A person with good credit who signs a loan or lease alongside a primary borrower to help them get approved. |
| Courtesy Checks | A complimentary, quick visual examination of a vehicle’s key safety components performed by mechanics during a service visit |
| Credit Bureau | A company that collects, compiles, and maintains individual consumer borrowing and repayment data to create credit reports. |
| Credit Card | A credit card lets you borrow money from a bank to buy things now and pay for them later, acting like a revolving loan with a set spending limit |
| Credit History | A detailed record of how you borrow and repay debt, including payment timeliness, credit account types, and balances, typically summarized in a credit report. |
| Credit Limit | The maximum amount of money a lender allows you to borrow on a credit card or line of credit at any given time |
| Credit Report | A detailed, 7-10 year record of your financial history, tracking how you manage debt and repay loans. |
| Credit Score | A 3-digit number, typically between 300 and 850, that predicts how likely you are to repay debt on time. |
| Debt | Money you owe a person or a business. |
| Finance charge | The total cost of borrowing money or using credit, expressed as a dollar amount. |
| Grace Period | A period immediately after the deadline for an obligation during which a late fee, or other action that would have been taken as a result of failing to meet the deadline. |
| Interest Rate | The percentage cost of borrowing money or the return earned on lending it, calculated on the principal amount, and it determines how much extra you pay on a loan or earn on savings over time. |
| Introductory Rate | a temporary, lower-than-normal interest rate offered by lenders to new customers for a set period, mostly used in credit cards. |
| Late Payment Fee | A financial penalty charged by creditors, lenders, or service providers when a borrower fails to make at least the minimum payment by the established due date. |
| Lender | An individual, group, or financial institution that provides money or assets to another party with the expectation of being repaid, typically with added interest, over a set period |
| Line of Credit | A flexible, revolving loan facility from a bank or financial institution that allows you to borrow up to a specific limit, repay it, and borrow again. |
| Over the limit fee | A charge applied by credit card issuers when your balance exceeds your assigned credit limit, but only if you have opted in to allow such transactions. |
| Pre-approved | When a lender has formally reviewed your credit, income, and assets to tentatively approve you for a specific loan amount or credit limit. |
| Principle | The original sum of money borrowed in a loan or invested in an asset, excluding any interest, earnings, or fees. |
| Secured Loan | A type of credit backed by a valuable asset, such as a home or car, which acts as collateral to secure the debt. |
| Term | The specific timeframe of a loan, investment, or contract, determining when a debt must be repaid or when an asset matures. |
Created by:
mshuart26