Borrowing Basics

issue of money, goods or services to an individual or entity with the expectation of future payments

• Debit

• Lein

• Collateral

• Credit

trusted institutions where money is kept secure

• Credit

• Interest

• Bank

• Collateral

process of borrowing money from an individual or investor without a bank’s consent

• Peer-to-Peer Lending

• Debit Card

• Collateral

• Revolving Credit

amount of money charged by a bank to borrow money

• Loan Amortization

• Interest

• Credit Card

short-term, high cost loan typically for $500 or less and due on the next payday or when income is received

• Principal Payment

• Revolving Credit

• Annual Percentage Rate

• Payday Loan

valuable asset the borrower offers to lender for securement of the loan provided

• Loan Amortization

• Collateral

• Lien

• Interest

maximum amount being loaned to the borrower by the creditor

• Installment Credit

• Unsecured Credit

• Revolving Credit

• Annual Percentage Rate

determines a series of fixed or installment payments a borrower must repay over a determined period of time

• Revolving Credit

• Unsecured Credit

• Income Statement

• Installment Credit

right to keep possession of property of another until a debt owed by the person is discharged

• Interest

• Lien

• Collateral

• Unsecured Credit

loan which is issued and supported by a borrower’s reliability, rather than value of an asset

• Installment Credit

• Revolving Credit

• Payday Loan

• Unsecured Credit