CM Unit 7 Vocab

Law that sets a limit on the maximum rate of interest a lender may charge a borrower (i.e. a credit card company could charge a consumer)

• Universal Default

• Unsecured Debt

• Usury Law

• Line of Credit

A fee you pay every year for using a credit card

• Line of Credit

• Annual Fee

• Late Fee

• APR

A fee that you are charged if you are late with a credit card payment

• Annual Fee

• Unsecured Debt

• Revolvers

• Late Fee

What credit card companies call people who do not pay off their credit cards at the end of the month.

• Revolvers

• Unsecured Debt

• Deadbeats

• Universal Default

An indication of how likely you are to pay your credit card bill

• Usury Laws

• Line of Credit

• Universal Default

• FICO Score

A loan for which there is no collateral to be collected if the money is not repaid. These types of loans give rise to higher interest rates.

• Universal Default

• APR

• Unsecured Debt

• FICO Score

A set amount of money you are allowed to borrow.

• Line of Credit

• Late Fee

• Usury Laws

• APR

The amount of interest that is charged on a balance of the credit amount.

• Line of Credit

• Late Fee

• Annual Fee

• APR

What credit card companies call people who fully pay off their credit cards at the end of the month.

• FICO Score

• Deadbeats

• Universal Default

• Revolvers

A provision found in some credit contracts that allows the companies to raise their interest rates if a customer defaults on any of their loans, including from other lenders.

• Usury Laws

• Universal Default

• Unsecured Debt

• Line of Credit