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24 Cards in this Set
- Front
- Back
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Capacity
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A "5 C": you have a job, money in bank, good income.
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Annual Percentage Rate
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This determines the cost of credit on a yearly basis
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Credit Bureau
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Agencies like TRW, Trans Union keep credit files on us
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Unsecured Loan
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A loan not backed by collateral
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Credit Burden
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This should be no more than 20% of your income
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"5 C's of Credit"
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The factors that determine your credit worthiness
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Fixed Rate
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Interest that remains the same
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Installment Loan
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Pay a set amount of money "up front" and the balance in equal monthly payments, which include interest
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Character
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a "5 C": You're an honor student and Eagle Scout
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Cosigner
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Someone who agrees to make a loan payments if you don't
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Collateral
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A "5 C": What you have to "put up" as security for loan
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Garnishment
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When a creditor takes all/ part of your paycheck if you miss credit card payments/ loan payments
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Credit Application
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Form you fill out to get a credit card or a loan
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Credit History
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A "5 C": Pay bills on time; have 5 credit cards
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Repossess
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A creditor's legal right to "take back" collateral
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Credit Reference
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This testifies to your reliability/ ability to pay loan
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Down Payment
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Initial Portion of a total bill paid with cash/check
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Security Agreement
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Explains how interest will be charged on an account
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Grace Period
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Amount of time to pay debt without having to pay interest
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Variable Rate
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A type of loan where the interest changes
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Finance Charge
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Total amount it costs to finance a loan in dollar and cents
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Principal
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Amount of money owed on the original amount of a loan
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Credit Limit
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The maximum amount you can charge on a credit card
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Capital
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A "5 C": what you own, how much savings you have
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