Unit 4 - Credit and Debt

The interest rate a credit card user will be charged on the unpaid portion of their balance

• Annual Percentage Rate (APR)

• Interest Rate

• Credit Score

• FICO Score

An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest

• Credit

• Loan

• Credit Card

• Interest Rate

A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest

• Credit Card

• Credit

• Loan

• Principal

A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report

• Credit Score

• FICO Score

• Interest Rate

• Annual Percentage Rate (APR)

Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score

• Default

• Loan

• Principal

• Credit

The most commonly used credit score

• FICO Score

• Credit Score

• Annual Percentage Rate (APR)

• Interest Rate

The rate charged for borrowing money usually expressed as a percent of the amount borrowed

• Interest Rate

• Principal

• Annual Percentage Rate (APR)

• Credit Card

An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest

• Loan

• Credit

• Credit Card

• Default

Original amount of money borrowed, separate from interest or fees

• Principal

• Loan

• Credit

• Annual Percentage Rate (APR)