10/17/22: MOF VOCAB_UNIT 3_TYPES OF CREDIT

The act of transferring debt from one credit card account to another, usually for a fee.

• Balance Transfer

• Loan

• Credit Card

• Debit Card

Something valuable that the lender can take as payment if you can't or don't repay your secured loan.

• Car

• Home

• Kids

• Collateral

The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply.

• Goodbye APR

• Introductory APR

• Interest

• Joint Account

A mortgage that has a fixed interest rate for the entire term of the loan as long as on time payments are being made.

• Fixed Rate Mortgage

• Adjustable Rate Mortgage

• Regular Mortgage

• New Mortgage

A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of the loan.

• Cash

• credit

• Down Payment

• checking

A consumer loan extended to a homeowner that uses the borrower's home as collateral.

• Home-Equity Loan

• Personal Loan

• Private Loan

• Payday Loan

A method of lending very small sums to individuals, typically in developing countries, to start or expand a small business.

• Micro Credit

• Personal Loan

• Public Loan

• Quick Loan

A contract (often used for cars or property) by which one party gives property to another for a specified time, usually in return for a periodic payment.

• Mortgage

• Loan

• Lease

• Penalty

A type of loan issued by a bank, credit union or online lender that you pay back in fixed monthly payments, typically over two to seven years.

• Mortgage

• Personal Loan

• Credit Card

• Checking Account

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.

• Penalty

• Default

• Loan

• Credit Limit