Types of Credit Vocabulary

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Across
  1. 3. Original amount of money borrowed, separate from interest or fees
  2. 6. Percentage Rate, The cost you pay each year to borrow money, including fees, expressed as a percentage
  3. 7. Payment, A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan
  4. 8. Debt, Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made
  5. 10. Period, The number of days between a borrower's statement date and when payment is due, often without accruing interest
  6. 13. Something valuable that the lender can take as payment if you can't or don't repay your secured loan
  7. 15. Loan, Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal
  8. 16. Fee, A yearly fee that may be charged for having a specific credit card, independent of how you use the card
  9. 17. A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
  10. 18. Card, A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest
  11. 20. Card, A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check
  12. 21. Limit, The maximum amount that may be borrowed on a credit card
Down
  1. 1. Debt, Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made
  2. 2. Payment, 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
  3. 4. Loan, A type of loan issued by a bank, credit union or online lender that you pay back in fixed monthly payments, typically over two to seven years
  4. 5. The amount you owe as the cost of borrowing money
  5. 6. The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest
  6. 9. Loan, A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck
  7. 11. Mortgage, A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month
  8. 12. Credit, 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
  9. 13. Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
  10. 14. Loan, A loan with an interest rate that does not change over the life of the loan
  11. 19. The amount of time you have to repay your entire loan