Using Credit Wisely

those that extend credit, typically banks

amount you are borrowing

the interest rate on a loan is expressed as an annual percentage (APR)

the rate banks charge their customers, usually corporations rather than individuals

both interest owed and also any fees on the loan besides interest thay the lenders may charge.

a one-time advance of a sum of money that you agree to pay back over a predetermined length of time(called a term) ex: mortgages, car loans, student loans

credit where there is no term to the loan; you can take as little or as much time as you want to pay back what you borrow.

another name for installment loans.

table that shows how payments are applied over the loan term(dividing each payment into payment interest, and paying principal)

another name for revolving credit