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21 Cards in this Set
- Front
- Back
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way to calculate interest
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interest formula
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whats the interest formula
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interest= Principal x Rate x Time
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stay the same for the life of the loan or amount
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fixed interest rates
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change at certain times, when rate changes payment changes
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adjustable or variable interest rates
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amount of time your obligated to make payments
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loan term
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yearly fee for having an open account
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annual fee
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fee for withdrawing cash on your credit account
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cash-advance fee
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amount of time before interest starts
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grace period
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final payment date of a loan
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maturity date
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charge to process your loan
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origination fee
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checking before making a loan commitment to know about extra charges
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prepayment penalty
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money you pay toward the purchase to reduce the loan amount
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down payment
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lets you borrow up to a certain amount whenever you want, no set payoff day
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revolving credit
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offering interest rate discounts as incentives
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discount points
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entire loan amount is paid to you at once
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installment credit
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lets you pay in full for a service as charges add up
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service credit
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able to use the credit card but not legally liable for the balance due
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unauthorized user
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equally responsible for the balance of the account
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joint account holder
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way for lenders to check your reputation for paying back what you owe
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credit reports
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3 digit number based on credit reports
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credit score
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someone that lenders see as a big credit risk
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subprime borrower
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