Personal Finance Vocabulary Pre-Assessment

The outstanding balance on a loan, excluding interest and fees.

• Appraisal

• Principal

• PITI

• Bankrupt

A number, roughly between 300 and 800, that measures an individual's credit worthiness.

• Credit card

• Interest

• Credit score

• Collateral

Under the Equal Credit Opportunity Act (ECOA), a written request for credit made in accordance with the procedures established by a creditor.

• Loan application

• Amortization

• Loan fee

• Foreclosure

A written contract between a borrower and a lender that set terms and conditions; ex. amount, rate, fee, maturity, collateral.

• interest

• endorsement

• mortgage

• loan

Debt-to-Income ration is the percentage of total debt payments divided by the gross income. A higher ration means higher the risk and possibly a higher interest rate.

• PITI

• Overdraft

• DTI

• Mobile banking

The cost of using money.

• Debit card

• APR

• Credit report

• Interest

The cost of credit on a yearly basis, expressed as a percentage.

• APR

• Disclosure

• Endorsement

• Savings account

A demand deposit account subject to withdrawal of funds electronically or by check.

• Savings Account

• Checking Account

• Credit Report

• HELOC

The act of evaluating and setting the value of a specific piece of personal or real property.

• Amortization

• Overdraft

• Loan

• Appraisal

A form of electronic banking offered by banks to allow account holders to access certain account information using a smart phone/computer.

• DTI

• Signature Card

• Mobile banking

• Credit Card