Types of Credit Vocab

The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender

• Minimum payment
• Principal
• Interest Rate
• Term
• Secured loan/debt

A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees

• Schumer Box
• Principal
• Interest Rate
• Term
• Secured loan/debt

The amount still owed on a loan from the perspective of a borrower or lender

• Outstanding balance
• Principal
• Interest Rate
• Term
• Secured loan/debt

A mortgage in which the initial interest rate is fixed only for a set period of time and then it changes based on the current rate (could go up or down)

• Adjustable Rate Mortgage
• Principal
• Interest Rate
• Term
• Secured loan/debt

loans that imposes unfair, deceptive, or abusive loan terms on borrowers. In many cases, these loans carry high fees and interest rates. (A payday loan is an example of this)

• Predatory lending
• Principal
• Interest Rate
• Term
• Secured loan/debt

An open line of credit that can be used for any purchases as long as you are under the limit; its payments vary monthly based on size of the debt (a credit card is an example of this type of credit)

• Revolving credit
• Principal
• Interest Rate
• Term
• Secured loan/debt

something, usually money, owed by one party to another.

• Debt
• Principal
• Interest Rate
• Term
• Secured loan/debt

A loan with an interest rate that does not change over the life of the loan

• Fixed Rate Loan
• Principal
• Interest Rate
• Term
• Secured loan/debt

a number assigned to a person that indicates to lenders their capacity to repay a loan.

• Credit Score
• Principal
• Interest Rate
• Term
• Secured loan/debt

A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan

• Variable rate loan
• Principal
• Interest Rate
• Term
• Secured loan/debt