Unit 4 - Credit/Cost of Money 3A - Financial Management

Credit

confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment

Principal

the original money on which interest is made

interest

A charge for a loan, usually a percentage of the amount loaned and/or an excess or bonus beyond what is expected or due.

car loan

a personal loan to purchase an automobile

installment loans

a loan repaid in periodic payments

credit cards

a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.

APR

...The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transa

origination fee

a fee charged by a lender on entering into a loan agreement to cover the cost of processing the loan.

annual fee

An annual (yearly) fee associated with having a credit card is a separate fee from interest rate on purchases. Many credit card issuers charge an annual fee for the use of their card, typically $20-$50.

over-the-limit fee

the maximum amount that you can charge on your credit card. Credit card companies set your limit when you apply for a card by considering several factors. For starters, they'll look at your credit score, which is a number that represents your entire credi

late fee

A charge against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date

grace period

A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation o

debt

An amount of money borrowed by one party from another

Collateral

security pledged for the payment of a loan

capacity

The maximum level of output of goods and/or services that a given system can potentially produce over a set period of time

character

a set of qualities that are shared by many people in a group, country, etc.

credit report

a __________ details a person's financial history specifically related to their ability to repay borrowed money.

credit score

an numerical expression based on a level analysis of a person's credit files to represent the creditworthiness of that person

Bankruptcy

______ is when a person or organization declares in law unable to pay debt

predatory lending

To loan money to consumers in the hope and expectation they will default and the lender will be able to take the collateral.

cash advances

a service provided by most credit card and charge card issuers. The service allows cardholders to take cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit.

charge cards

a credit card for use with an account that must be paid when a statement is issued.

consolidation loans

a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period

Consumer Credit Counseling Services (CCCS)

A nonprofit agency with offices in a number of states.

finance charge

any fee representing the cost of credit, or the cost of borrowing

line of credit

A credit source extended to a government, business or individual by a bank or other financial institution

minimum payment

The lowest required amount of money to pay on a credit card statement, and is about 2-3% of the total payment.

mortgage

secured loan used to buy real estate (Or houses)

pawn shops

a store that offers money for an item with the option to redeem the item within a period of time.

secured/ unsecure loan

A loan with collateral (EX. A mortgage)
A loan that is not secured by an asset; A loan without collateral

Truth in Lending Act 1968

this is called the Consumer Credit Protection Act, requiring money lenders to be explicit about the true costs of credit transactions. It also outlaws the use of threatened or actual violence to collect debts and restricts the amount of garnishments. The

usury

an unlawfully high amount or rate of interest

variable interest rate

An interest rate on a loan or security that fluctuates over time.

Capital

the wealth, whether in money or property, owned or employed in business by an individual, firm, corporation, etc.

Lien

The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.

School Loans

money a student takes out to help pay for university, tuition, books, etc. It may be deferred until the student is done with school and usually has very low interest rates

Credit

confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment

Principal

the original money on which interest is made

interest

A charge for a loan, usually a percentage of the amount loaned and/or an excess or bonus beyond what is expected or due.

car loan

a personal loan to purchase an automobile

installment loans

a loan repaid in periodic payments

credit cards

a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.

APR

...The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transa

origination fee

a fee charged by a lender on entering into a loan agreement to cover the cost of processing the loan.

annual fee

An annual (yearly) fee associated with having a credit card is a separate fee from interest rate on purchases. Many credit card issuers charge an annual fee for the use of their card, typically $20-$50.

over-the-limit fee

the maximum amount that you can charge on your credit card. Credit card companies set your limit when you apply for a card by considering several factors. For starters, they'll look at your credit score, which is a number that represents your entire credi

late fee

A charge against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date

grace period

A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation o

debt

An amount of money borrowed by one party from another

Collateral

security pledged for the payment of a loan

capacity

The maximum level of output of goods and/or services that a given system can potentially produce over a set period of time

character

a set of qualities that are shared by many people in a group, country, etc.

credit report

a __________ details a person's financial history specifically related to their ability to repay borrowed money.

credit score

an numerical expression based on a level analysis of a person's credit files to represent the creditworthiness of that person

Bankruptcy

______ is when a person or organization declares in law unable to pay debt

predatory lending

To loan money to consumers in the hope and expectation they will default and the lender will be able to take the collateral.

cash advances

a service provided by most credit card and charge card issuers. The service allows cardholders to take cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit.

charge cards

a credit card for use with an account that must be paid when a statement is issued.

consolidation loans

a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period

Consumer Credit Counseling Services (CCCS)

A nonprofit agency with offices in a number of states.

finance charge

any fee representing the cost of credit, or the cost of borrowing

line of credit

A credit source extended to a government, business or individual by a bank or other financial institution

minimum payment

The lowest required amount of money to pay on a credit card statement, and is about 2-3% of the total payment.

mortgage

secured loan used to buy real estate (Or houses)

pawn shops

a store that offers money for an item with the option to redeem the item within a period of time.

secured/ unsecure loan

A loan with collateral (EX. A mortgage)
A loan that is not secured by an asset; A loan without collateral

Truth in Lending Act 1968

this is called the Consumer Credit Protection Act, requiring money lenders to be explicit about the true costs of credit transactions. It also outlaws the use of threatened or actual violence to collect debts and restricts the amount of garnishments. The

usury

an unlawfully high amount or rate of interest

variable interest rate

An interest rate on a loan or security that fluctuates over time.

Capital

the wealth, whether in money or property, owned or employed in business by an individual, firm, corporation, etc.

Lien

The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.

School Loans

money a student takes out to help pay for university, tuition, books, etc. It may be deferred until the student is done with school and usually has very low interest rates