Credit Vocab Review

Front

The process of paying off a debt in regular installments over a period of time is known as _____.

Back

Amortization

Front

The smallest amount you can pay each month to keep your credit card in good standing is called the _____. However, it's recommended that you pay your balance in full each month.

Back

Minimum Payment

Front

Amanda has taken out a(n) _____, which has an interest rate that changes based on the market. As a result, her monthly payments may change.

Back

Variable-Rate Loan

Front

A car loan is an example of _____, where the loan is backed by collateral. If payments are not made, the lender can seize the car itself.

Back

Secured Debt

Front

The _____ is the amount you are charged to borrow money.

Back

Interest

Front

To purchase their first home, the Thompsons took out a(n) _____?

Back

Mortgage

Front

The _____ is how long you have to pay the money back, with interest, to the lender.

Back

Term

Front

The maximum amount of money that can be charged to a credit card is known as the _____

Back

Credit Limit

Front

When buying a new car, Michael was required to pay 20% of the car's price upfront as a(n) _____, reducing the amount he needed to borrow.

Back

Down Payment

Front

A(n) _____ is often considered a risky option for emergency cash because it needs to be repaid by your next paycheck and has a high interest rate.

Back

Payday Loan