Personal Finance Theme 6 Vocab

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installment loan

Back 1

a loan repaid with interest in equal periodic payments

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credit card

Back 2

a plastic card issued by a bank, business, etc., for the purchase of goods or services on credit

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student loan

Back 3

loan designed to help students pay for university tuition, books, and living expenses; differs from other loans in that the interest rate is substantially lower and the repayment schedule is deferred while the student is still in full time education

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mortgage

Back 4

the charging of real property by a debtor to a creditor as a security for a debt, on the condition that it shall be returned on payment of the debt within a certain period; a loan obtained through the conveyance of property as security

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annual percentage rate

Back 5

the interest rate for a whole year rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.

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annual fee

Back 6

yearly fee associated with having a credit card is a separate fee from interest rate on purchases

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credit limit

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the maximum amount of credit that a financial institution or other leader will extend to a debtor for a particular line of credit

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finance charge

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any fee representing the cost of credit, or the cost of borrowing; interest accrued on, and fees charged for, some forms of credit

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origination fee

Back 9

fee charged by a lender on entering into a loan agreement to cover the cost of processing the loan

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loan term

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the amount of time set by the lender for a buyer to pay a mortgage

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grace period

Back 11

time past the deadline for an obligation during which a late penalty that would have been imposed is waived

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over-the-limit fee

Back 12

a fee charged when one exceeds a credit limit, even if that happens because of fees or interest

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late fee

Back 13

a charge levied against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date

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universal default

Back 14

practice in the financial services industry in the US for a particular lender to change the terms of a loan from the normal terms to the default terms

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debt

Back 15

something, typically money, that is owed or due

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capacity

Back 16

the maximum amount that something can contain; the amount that something can produce

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collateral

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something pledged as a security for the repayment of a loan, to be forfeited in the even of a default

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character

Back 18

the distinctive nature of something; the mental and moral qualities distinctive to an individual

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credit report

Back 19

analysis of a person's credit standing over a period of time

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credit history

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a record of an individual's or a company's past borrowing and repaying, including information about late payments and bankruptcy

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credit score

Back 21

a number assigned to a person that indicated to lenders their capacity to repay a loan

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Truth in Lending Act

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federal law designed to protect consumers in credit by requiring clear key terms of the lending arrangement and all its costs

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Fair Credit and Charge Card Disclosure Act

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part of Truth in Lending Act; federal law that ensures you get the facts you need to make wise credit choices

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caveat emptor

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the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made

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debt-to-income ratio

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percentage of a consumer's monthly gross income that goes toward paying debts

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minimum payment

Back 26

the minimum amount that you must pay, usually monthly, on a home equity loan or line of credit

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down payment

Back 27

an initial payment made when something is bought on credit

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FICO score

Back 28

credit score calculated with software from Fair Isaac Corporation

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Equifax

Back 29

a consumer credit reporting agency in the US, considered one of the three largest American credit agencies

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Experian

Back 30

a consumer credit reporting agency in the US; considered one of the three largest American credit agencies

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Trans Union

Back 31

a consumer credit reporting agency in the US; considering one of the three largest American credit agencies

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Classic card

Back 32

brand name for the standard card issued by VISA

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Gold card

Back 33

a charge card or credit card issued to people with a high credit rating and giving benefits not available with the standard card

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Platinum card

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a credit card made available to individuals with high credit ratings, which carried certain privileges that are unavailable to holders of other cards

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rebate card

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a debit card that provides funds promised by a business as a rebate; they are often offered to those who make a specific purchase, or for loyalty to a company by accumulating a certain amount of money or number of points worth of purchases from a particular company

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secured card

Back 36

a credit card guaranteed by a deposit in a savings account or certificate of deposit

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unsecured card

Back 37

a credit card that is not secured by collateral

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cash advance

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money borrowed against a charge or credit card, which accrues interest differently than charged purchases, sometimes at a higher rate and without a grace period

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bankruptcy

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a legally declared or recognized condition of insolvency of a person or organization