Loans & Interest Vocab

The length of time you have to pay off the loan, with interest.

• Loan Term

• Capital

• Interest

• Cosigner

APR stands for

• Annual Percentage Rate

• Annual Person Rate

• Annual Heart Rate

• Arithmetic Hating People

Which Credit Card will you spend more on in interest long term?

• Credit Card #1: Intro Rate 1% (for one year), Purchase Rate 24%

• Credit Card #2: Intro Rate 0% (for one year), Purchase Rate 33%

The total amount of what it costs you to use credit in a given year; it is expressed as a percentage of the amount borrowed.

• Loan Term

• Rate

• APR

• ART

You may need a cosigner if….(click all that apply)

• You don’t meet the minimum income requirements

• You have no established credit.

• You have bad credit.

• You are self-employed.

A loan in which the interest rate will stay the same for the entire loan term.

• Variable Rate Loan

• Fixed Rate Loan

A loan that is issued and supported only by the borrower’s creditworthiness, rather than by collateral. Usually offered at higher interest rates and have lower borrowing amounts than secured loans.

• Unsecured Loan

• Secured Loan

A loan where the borrower offers collateral for the loan. Usually offer lower rates, higher borrowing limits, and longer repayment terms than unsecured loans.

• Secured Loan

• Unsecured Loan

A loan in which the interest rate fluctuates as market interest rates change.

• Fixed Rate Loan

• Variable Rate Loan

One of the top 3 financial missteps is failing to shop for the _________ APR on their credit cards and consumer loans.

• highest

• lowest

• sharpest

• dullest