Unit 5 Review

A type of loan where you borrow money from your retirement savings account:

• Installment Loan

• Auto Loan

• 401K Loan

• Mortgage

The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest:

• Credit Limit

• Minimum Payment

• Maximum Payment

• Amortization

The cost you pay each year to borrow money, including fees, expressed as a percentage:

• Interest

• APR

• Principal

• Loan

A credit card service that allows cardholders to withdraw a certain amount of cash typically at a high interest rate or for a fee:

• Cash Advance

• Cash Back

• Credit Limit

• Minimum Payment

A credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment toward their balance, reward points, travel miles, or gift cards:

• Cash Advance

• Cash Back

• Credit Limit

• APR

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

• Cosigner

• Collateral

• Auto Loan

• Mortgage

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it:

• Cosigner

• Collateral

• Credit Limit

• Lease

The maximum amount that may be borrowed on a credit card:

• Collateral

• Minimum Payment

• Credit Limit

• Balance

A partial payment made in cash at the beginning of the purchase of a good or service:

• APR

• Minimum Payment

• Principal

• Down Payment

Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal:

• Auto Loan

• Mortgage

• Installment Loan

• Personal Loan