Types of Credit Vocabulary

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Across
  1. 1. A higher interest rate triggered by being late with or missing a credit card payment
  2. 5. 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
  3. 7. The maximum amount that may be borrowed on a credit card
  4. 10. A legal document that outlines the terms and conditions for using your credit card
  5. 11. A method of debt financing that enables individuals to borrow and lend money without the use of a financial institution as an intermediary
  6. 12. A consumer loan extended to a homeowner that uses the borrower's home as collateral
  7. 13. The cost you pay each year to borrow money, including fees, expressed as a percentage. Commonly listed as APR.
  8. 17. The number of days between a borrower's statement date and when payment is due, often without accruing interest
  9. 18. The value of ownership built up in a home or property that represents the current market value of the house minus any remaining mortgage payments
  10. 21. A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee
  11. 22. A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment
  12. 23. A card that is loaded with a specific cash amount before you use it. It is not linked to a bank or credit union account.
  13. 25. Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
  14. 26. 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
  15. 29. A nonprofit financial institution that is owned by its members and organized for their benefit
  16. 30. A federal student loan available to undergraduate and graduate students; the student is responsible for paying the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into the principal amount of their loan
  17. 34. The act of transferring debt from one credit card account to another, usually for a fee
  18. 37. A fee charged if your payment is received after the due date
  19. 40. 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
  20. 43. A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral, which becomes the credit limit of the card, thereby making it low-risk to the credit card company
  21. 48. 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
  22. 49. 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
  23. 50. Original amount of money borrowed, separate from interest or fees
  24. 51. A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
  25. 53. A monthly record of your account transactions provided by your credit card company electronically or on paper
  26. 54. A loan used to fund expenses connected with operating a small business
  27. 55. The actual cost a student pays to attend a school, calculated as the sticker price minus grants and scholarships
  28. 56. A yearly fee that may be charged for having a specific credit card, independent of how you use the card
  29. 57. A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools
  30. 58. The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet
Down
  1. 1. 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
  2. 2. A special type of credit card with no interest because you must pay the balance in full each month
  3. 3. 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
  4. 4. A loan with an interest rate that does not change over the life of the loan
  5. 6. A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
  6. 8. Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made
  7. 9. A mortgage that has a fixed interest rate for the entire term of the loan as long as on time payments are being made
  8. 14. A federal student loan available to undergraduate students; the federal government pays interest on the loan as long as the student is in school at least part-time
  9. 15. A bank or credit account that is shared between two or more people which allows everyone named on the account to access the funds
  10. 16. A place where a customer makes the payment for goods or services and where sales taxes may become payable. The transaction can take place through a physical device or online through a digital system.
  11. 19. 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
  12. 20. A credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment toward their balance, reward points, travel miles, or gift cards
  13. 24. 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
  14. 27. 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
  15. 28. A contract (often used for cars or property) by which one party gives property to another for a specified time, usually in return for a periodic payment
  16. 31. Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made
  17. 32. A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan
  18. 33. A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest
  19. 35. The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply
  20. 36. The amount of time you have to repay your entire loan
  21. 38. A type of loan where you borrow money from your retirement savings account. You must pay that borrowed money back, plus interest, within 5 years of taking your loan, in most cases.
  22. 39. A method of lending very small sums to individuals, typically in developing countries, to start or expand a small business
  23. 41. The rate charged for borrowing money usually expressed as a percent of the amount borrowed
  24. 42. Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
  25. 44. Something, typically money, that you owe to a person or a business
  26. 45. An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest
  27. 46. Something valuable that the lender can take as payment if you can't or don't repay your secured loan
  28. 47. The amount you owe as the cost of borrowing money
  29. 52. A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees