{
 "source": "https://peabody.kids/flashcards/finance-credit-and-loans",
 "id": "finance-credit-and-loans",
 "title": "Credit, Loans and Interest",
 "category": "health-life",
 "subject": "Personal Finance",
 "levels": [
  "9-12",
  "college",
  "adult"
 ],
 "description": "Credit scores, cards, loans, insurance and taxes explained.",
 "tags": [
  "credit",
  "loans",
  "debt",
  "insurance"
 ],
 "frontLabel": "Term",
 "backLabel": "Meaning",
 "cards": [
  [
   "Credit",
   "Borrowing money or buying now and paying later"
  ],
  [
   "Debt",
   "Money you owe"
  ],
  [
   "Loan",
   "Money borrowed that must be paid back, usually with interest"
  ],
  [
   "Lender",
   "A person or business that gives a loan"
  ],
  [
   "Borrower",
   "The person who receives the loan"
  ],
  [
   "Credit card",
   "A card that lets you borrow money to buy things and pay later"
  ],
  [
   "Credit limit",
   "The most you can borrow on a card"
  ],
  [
   "Minimum payment",
   "The smallest amount you must pay each month"
  ],
  [
   "Statement",
   "A monthly summary of your card or account activity"
  ],
  [
   "Due date",
   "The day a payment must be made by"
  ],
  [
   "Late fee",
   "A charge for paying after the due date"
  ],
  [
   "APR",
   "Annual percentage rate, the yearly cost of borrowing"
  ],
  [
   "Grace period",
   "Time to pay a card balance without being charged interest"
  ],
  [
   "Balance (credit card)",
   "The amount you currently owe"
  ],
  [
   "Paying in full",
   "Paying the whole statement balance so no interest is charged"
  ],
  [
   "Credit score",
   "A number that shows how reliably you pay back debts"
  ],
  [
   "Credit score range (FICO)",
   "300 to 850"
  ],
  [
   "What helps a credit score",
   "Paying on time and keeping balances low"
  ],
  [
   "What hurts a credit score",
   "Missed payments and maxing out cards"
  ],
  [
   "Credit report",
   "A record of your borrowing and payment history"
  ],
  [
   "Credit bureau",
   "A company that collects credit reports; Equifax, Experian, TransUnion"
  ],
  [
   "Utilization",
   "The share of your credit limit you're using"
  ],
  [
   "Good rule for credit utilization",
   "Stay below about 30 percent"
  ],
  [
   "Secured credit card",
   "A card backed by a cash deposit"
  ],
  [
   "Cosigner",
   "A person who promises to pay if the borrower doesn't"
  ],
  [
   "Collateral",
   "Property pledged to a lender if a loan isn't paid"
  ],
  [
   "Mortgage",
   "A loan to buy a home"
  ],
  [
   "Down payment",
   "Money paid upfront when buying something expensive"
  ],
  [
   "Auto loan",
   "A loan to buy a car"
  ],
  [
   "Student loan",
   "A loan to pay for school"
  ],
  [
   "Payday loan",
   "A very high-cost, short-term loan that is risky"
  ],
  [
   "Interest rate",
   "The percent charged for borrowing"
  ],
  [
   "Fixed rate",
   "An interest rate that stays the same"
  ],
  [
   "Variable rate",
   "An interest rate that can change"
  ],
  [
   "Term (loan)",
   "How long you have to repay"
  ],
  [
   "Amortization",
   "Paying off a loan in regular payments over time"
  ],
  [
   "Default",
   "Failing to repay a loan"
  ],
  [
   "Bankruptcy",
   "A legal process when someone cannot pay their debts"
  ],
  [
   "Repossession",
   "A lender taking property when a loan isn't repaid"
  ],
  [
   "Debt snowball",
   "Paying off the smallest debt first"
  ],
  [
   "Debt avalanche",
   "Paying off the highest-interest debt first"
  ],
  [
   "Identity theft",
   "Someone using your personal information without permission"
  ],
  [
   "Credit freeze",
   "A lock on your credit file to block new accounts"
  ],
  [
   "Insurance",
   "Paying a fee so a company covers big costs if something bad happens"
  ],
  [
   "Premium",
   "The regular payment for insurance"
  ],
  [
   "Deductible",
   "The amount you pay before insurance pays"
  ],
  [
   "Health insurance",
   "Coverage for medical costs"
  ],
  [
   "Auto insurance",
   "Coverage for car accidents and damage"
  ],
  [
   "Renters insurance",
   "Coverage for belongings in a rented home"
  ],
  [
   "Life insurance",
   "A payment to family after someone dies"
  ],
  [
   "Warranty",
   "A promise that a company will repair or replace a faulty product"
  ],
  [
   "Social Security number",
   "A nine-digit US number used for work and taxes; keep it private"
  ],
  [
   "W-2",
   "A form from an employer showing yearly pay and taxes withheld"
  ],
  [
   "W-4",
   "A form telling an employer how much tax to withhold"
  ],
  [
   "Tax return",
   "A form reporting your income and taxes to the government"
  ],
  [
   "Tax refund",
   "Money returned when you paid too much in taxes"
  ],
  [
   "401(k)",
   "A US employer retirement savings plan"
  ],
  [
   "IRA",
   "Individual retirement account"
  ],
  [
   "Roth IRA",
   "A retirement account with taxed deposits and tax-free growth"
  ],
  [
   "Employer match",
   "Money an employer adds to your retirement savings"
  ],
  [
   "FDIC",
   "US agency that insures bank deposits, up to $250,000 per depositor per bank"
  ],
  [
   "Rule of 72",
   "Divide 72 by the interest rate to estimate years to double money"
  ],
  [
   "Compound growth example",
   "$100 at 7% roughly doubles in about 10 years"
  ],
  [
   "Overdraft",
   "Spending more than your account holds"
  ],
  [
   "Overdraft fee",
   "A charge for overdrawing an account"
  ]
 ]
}