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credit card

Personal Finance- Credit Card Vocabulary
Across
An agreement where you are credited with a fixed amount (usually of money) for a fixed period of time, usually with interest
A student loan that the federal government pays interest on as long as the student is in school half-time.
The value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments. This value is built up over time as the property owner pays off the mortgage and the market value of the property appreciates.
A line of credit extended to a homeowner that uses the borrower's home as collateral. Once a maximum loan balance is established, the homeowner may draw on the line of credit at his or her discretion. Interest is charged on a predetermined variable rate, which is usually based on prevailing prime rates.
A cardholder benefit offered by some credit card companies that pays the cardholder a small percentage of their net expenditures (purchases less refunds). Cash back benefits often provide the cardholder with the opportunity to choose from taking the cash, or using the "points" for purchases, travel (as with miles awards for air travel) or gift cards.
A student loan where the student is responsible for the interest during the time they are in school. They can pay that interest while studying or have it rolled into the loan.
A card issued by a financial company giving the holder an option to borrow funds. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating.
A member-owned financial co-operative. These institutions are similar to banks, except they are created and operated by their members and profits are shared amongst the owners.
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.
A type of credit card that is backed by a savings account used as collateral on the credit available with the card. Money is deposited and held in the account backing the card.
A mortgage that has a fixed interest rate for the entire term of the loan. The distinguishing factor of a fixed-rate mortgage is that the interest rate over every time period of the mortgage is known at the time the mortgage is originated.
The rate of borrowers who fail to remain current on their loans. It is a critical piece of information used by lenders to determine their risk exposure and economists to evaluate the health of the overall economy.
Something valuable that the lender can take as payment if you can't pay back your loan (like a house or car)
Down
A contract by which one party (like a car dealer) conveys property (like a car), to another (like a customer) for a specified time, usually in return for a periodic payment
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
An estimate of the fees due at closing for a mortgage loan that must be provided by a lender to a borrower within three days of the lender taking a borrower's loan application.
A type of mortgage in which the interest rate paid on the outstanding balance varies according to a specific benchmark. The initial interest rate is normally fixed for a period of time after which it is reset periodically, often every month.
How much a fixed asset is worth at the end of its lease, or at the end of its useful life. If you lease a car for three years, its residual value is how much it is worth after three years.
The amount you borrow
The amount of time you have to repay your principal
The failure to promptly pay interest or principal when due. Borrowers may default when they are unable to make the required payment or are unwilling to honor the debt.