Credit Vocabulary

Define: Annual Fee

• Interest that is charged to a credit account if the account holder doesn’t pay off the balance in full.

• An annual fee charged for the privilege of having the credit card.

• Fees you may have to pay for paying late or for charging over your limit.

• An interest rate charged to a customer in the early stages of a loan.

Define: APR

• The cost of borrowing money on an annual basis.

• A yearly fee, charged by the credit card company, for the convenience of having the credit card.

• A measure of an individual’s credit risk; calculated from a credit report, using a standardized formula.

• Interest that is charged to a credit account if the account holder doesn’t pay off the balance in full.

Define: Credit Card

• The most credit you are allowed to carry.

• The card issuer adds together your balance for each day and then divides it by the number of days in the month.

• A preferred method of debt repayment.

• A type of card, issued by a bank, that allows users to finance a purchase (buy now, pay later).

Define: Credit Report

• An expense, such as a charitable donation, that can be deducted from one’s taxable income.

• A measure of an individual’s credit risk; calculated from a credit report, using a standardized formula.

• A detailed report of an individual’s credit activity and history.

• A higher interest rate as a result of late or missing payments.

Define: Credit Score

• A measure of an individual’s credit risk; calculated from a credit report, using a standardized formula.

• A detailed report of an individual’s credit activity and history.

• The most credit you are allowed to carry.

• Interest that is charged to a credit account if the account holder doesn’t pay off the balance in full.

Define: Credit Limit

• A measure of an individual’s credit risk; calculated from a credit report, using a standardized formula.

• A detailed report of an individual’s credit activity and history.

• The most credit you are allowed to carry.

• Time frame that a loan agreement is in force.

Define: Minimum payment

• Minimum amount on a credit card balance that must be paid each month.

• A higher interest rate as a result of late or missing payments.

• An interest rate charged to a customer in the early stages of a loan.

• An interest rate charged to a customer in the early stages of a loan.

Define: Late payment and over the limit fees

• A higher interest rate as a result of late or missing payments.

• A higher interest rate as a result of late or missing payments.

• An interest rate charged to a customer in the early stages of a loan.

• Fees you may have to pay for paying late or for charging over your limit.

Define: Penalty APR

• An expense, such as a charitable donation, that can be deducted from one’s taxable income.

• A higher interest rate as a result of late or missing payments.

• A decrease or loss in value.

• Minimum amount on a credit card balance that must be paid each month.

Define: Finance Charge

• Interest that is charged to a credit account if the account holder doesn’t pay off the balance in full.

• A higher interest rate as a result of late or missing payments.

• An interest rate charged to a customer in the early stages of a loan.

• Minimum amount on a credit card balance that must be paid each month.