Economics Ch. 4

A yearly fee that's charged by the credit card company for the convenience of the credit card.

• annual fee

• annual percentage rate (APR)

• credit report

• credit score

Cost of borrowing money on an annual basis, takes into account the interest rate and other related fees on a loan.

• annual fee

• annual percentage rate (APR)

• credit report

• credit score

A detailed report of an individual's credit history.

• annual fee

• credit card

• credit report

• credit score

Type of card issued by a bank that allows users to finance a purchase.

• annual fee

• credit card

• credit report

• credit score

A measure of an individual's credit risk; calculated from a credit report using a standardized formula

• annual fee

• credit card

• credit report

• credit score

Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated

• loan term

• depreciation

• inflation

• loan financing

A decrease or loss in value

• loan term

• depreciation

• inflation

• loan financing

An interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time

• introductory rate

• annual percentage rate (APR)

• loan term

• upside down

A long-term rental agreement on a car; a form of secured long-term debt

• lease

• loan

• debt snowball

• upside down

When a person owes more on an item (like a car or house) than it is worth, the person is said to be...

• lease

• loan

• debt snowball

• upside down