Credit & Debt Fundamentals

Annual Fee

• Monthly charge for a service or membership
• One-time payment for a service or membership
• Bi-annual fee for a service or membership
• Yearly charge for a service or membership

Annual Percentage Rate (APR)

• A number that shows how much of your overall credit you’re using

• The fee you pay for a credit card each year

• The interest rate you pay on balances you carry over from month to month to month on a credit card

• The amount earned before taxes, benefits, and other payroll deductions are withheld from your paycheck

Authorized user

• Someone who has been given permission to access a system or perform certain actions
• How deserving you are of getting credit, according to companies that lend money

• A person allowed to use a credit card account by the primary cardholder

• Someone like a parent, family member, or friend who promises to pay back a loan if you don't

Capacity

• Property or financial resources that can be used as insurance in case the loan is not repaid

• Your current financial situation and whether you have the resources to pay back a new loan

• The maximum amount you can spend on a credit card before you have to start paying it back

• Buying something you need now with a promise to pay later. Credit is also a measure of financial wellness

Financial Character

• the mental and moral qualities distinctive to an individual

• traits like integrity, honesty, courage, loyalty, fortitude, and other important virtues that promote good behavior

• the particular combination of things about a person or place, esp. things you cannot see, that make that person or place different from others

• have the ability to deal effectively with difficult, unpleasant, or dangerous situations.

Child identity theft

• the unauthorized removal of a minor from the custody of the child's natural parents or legally appointed guardians.

• the action or crime of stealing

• When someone uses a minor’s personal information, such as name, address, or Social Security number to get credit

• the crime of taking something that does not belong to you, but not in a way that involves force or the threat of force

Collateral

• Property or financial resources that can be used as insurance in case the loan is

  not repaid

• loans are those that do not require the borrower to pledge any collateral, like personal loans, student loans and unsecured credit cards

• Buying something you need now with a promise to pay later

• A card that lets you make monthly payments to repay money that you spend

Credit freeze

• Cards withdraw money already in your account

• A kind of credit card that requires you pay a cash security deposit, usually equal to the

  amount of credit the company is offering

• A detailed history of how you have borrowed money in the past, including how you

  handled paying back loans and credit cards

• Restrict access to your credit report so no new accounts can be created because you suspect identity fraud

Credit history

• The record of your ability to pay back your debts

• Buying something you need now with a promise to pay later. Credit is also a measure

  of financial wellness.

• Your current financial situation and whether you have the resources to pay back

  a new loan

• A number determined by your credit history. It helps lenders determine how

  creditworthy you are

Credit limit

• How deserving you are of getting credit, according to companies that lend money

• Your current financial situation and whether you have the resources to pay back

  a new loan

• The maximum amount you can spend on a credit card before you have to start paying it back

• A number determined by your credit history. It helps lenders determine how

  creditworthy you are