Credit and Loans Flashcard

Front

An arrangement to receive goods, services, or money in exchange for a promise to repay later.

Back

Credit

Front

What is a key characteristic/benefit of loans?

Back

They are repaid in equal amounts over a set period of time.

Front

What is the main advantage of using credit cards?

Back

They allow repeated use of credit without having to reapply every time you use it.

Front

What should you always do with your credit card balance?

Back

Pay it in full every month.

Front

What is the charge for the privilege of borrowing money called?

Back

Interest

Front

What does APR stand for in financial terms?

Back

Annual Percentage Rate

Front

What is one benefit of having a lower APR?

Back

Lower cost of the loan

Front

What is a disadvantage of using credit cards?

Back

Increases the need to carry cash

Front

What is one disadvantage of using credit?

Back

Spending more money

Front

The fraudulent acquisition and use of a person's private identification.

Back

Identity theft