Types of Credit Vocab Review

Adjustable-Rate Mortgage (ARM)

• A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically

• A yearly fee that may be charged for having a specific credit card, independent of how you use the card

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

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

Annual Fee

• A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month

• A yearly fee that may be charged for having a specific credit card, independent of how you use the card

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

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

Annual Percentage Rate (APR)

• A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month

• A yearly fee that may be charged for having a specific credit card, independent of how you use the card

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

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

A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill

• Authorized User

• Cosigner

• Collateral

• Crowdfunding

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

• Authorized User

• Cosigner

• Collateral

• Crowdfunding

Fixed-Rate Loan

• A loan with an interest rate that does not change over the life of the loan

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

• 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

• A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment

Home-Equity Loan

• A loan with an interest rate that does not change over the life of the loan

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

• 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

• A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment

Installment Loan

• A loan with an interest rate that does not change over the life of the loan

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

• 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

• A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment

Consolidation Loan

• A loan with an interest rate that does not change over the life of the loan

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

• 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

• A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment

A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee

• Cash Back

• Cash Advance

• Annual Fee

• Revolving Credit