Using Credit Responsibly

The sum of money you pay upfront when making a purchase, typically a large one like a car or a house, to reduce the total amount you need to borrow.

• Down Payment

• Principle

A number from 300 to 850 that depicts a consumer's creditworthiness. The higher the score, the better.

• Credit Score

• Interest Rate

The total cost of borrowing money, including both the interest rate and any annual fees.

• Annual Percentage Rate (APR)

• Down Payment

The original amount of money you borrow before adding interest.

• Principal

• Interest Rate

To discuss and reach an agreement through compromise when dealing with others.

• Identity Theft

• Negotiate

The fee you pay when you borrow money, usually given as a percentage.

• Interest Rate

• Credit

Allows you to borrow money or buy things now and promise to pay for them later.

• Credit

• Credit Score

The reasonable price at which an item or property would sell in a typical market.

• Fair Market Value

• Annual Percentage Rate (APR)

When someone wrongfully obtains and uses another person's personal information with the intent to commit fraud, typically for financial gain.

• Negotiate

• Identity Theft