Managing Credit Vocabulary

Credit Limit

• Maximum amount you can borrow on a credit account

• The minimum payment required each month

• The interest rate applied to your balance

• The total amount of credit available to you

Credit History

• Record of past borrowing and repayments

• A summary of current bank account balances

• A list of all credit card offers available

• An overview of stock market performance

Debt

• Money owed to others

• A type of investment

• A financial asset

• A form of savings

Credit Counseling

• Service to help manage debt

• A type of investment strategy

• A method for increasing credit scores

• A legal process for bankruptcy

Interest Rate

• Cost of borrowing, expressed as a percentage

• A fee paid to the bank for account maintenance

• The amount of money saved in a bank account

• A tax imposed on financial transactions

Annual Percentage Rate (APR)

• Yearly interest rate charged on borrowed money

• A type of loan with no interest

• A fee charged for late payments

• The total amount paid over the life of a loan

Secured Credit

• Credit backed by collateral

• Unsecured credit with high interest

• Credit based on income verification

• Credit with no repayment terms

Credit Report

• Record of your credit history

• A summary of your bank transactions

• A list of your investments

• A document for loan applications

Credit Utilization

• Ratio of credit used to credit limit

• Total amount of debt owed

• Percentage of available credit used

• Amount of credit applied for

Bankruptcy

• Legal status of inability to repay debts

• A financial strategy to increase wealth

• A type of investment opportunity

• A government program for debt relief