Credit
Mortgage
A specific type of secured loan for buying property
Term
Amount of time you have to pay back your loan
credit
An arrangement where you get money, goods or services and agree to pay for it at some point in the future
Collateral
Anything valuable that the lender can take as repayment if you default on your loan and can't pay it back (house or car)
Auto loan Secured vs Unsecured Debt
CBE
Mortgage Variable vs Fixed Rate
CBE
Personal loan (from a bank) Secured vs Unsecured Debt
CBE
Personal loan (from a bank) Variable vs Fixed Rate
CBE
Small business loan (from a bank) Installment Loans vs Revolving Credit
CBE
Small business loan (from a bank) Variable vs Fixed Rate
CBE
Auto loan Variable vs Fixed Rate
CBE, though fixed is far more common
Factors That Impact Interest Rate Charged
Credit Score Amount of Laon Term of Loan Life Situation Employment history Limited debt Cosigner
Payday loan Variable vs Fixed Rate
F
Student loan (Federal) Variable vs Fixed Rate
F
Auto loan Installment Loans vs Revolving Credit
I
Mortgage Installment Loans vs Revolving Credit
I
Payday loan Installment Loans vs Revolving Credit
I
Personal loan (from a bank) Installment Loans vs Revolving Credit
I
Student loan (Federal) Installment Loans vs Revolving Credit
I
Cosigner
If the borrower defaults on a loan the cosigner is responsible to pay
Credit Card
Issued by a card provider with a credit limit to use when you want for whatever purchases you want. Includes monthly payments that can vary depending upon your activity. You are charged a interest for borrowing.
Unsecured
Not protected by collateral. Usually offers higher interest rates since this is more risky to the lender
Secured Loan
Protected by collateral. Usually offer lower interest rates since this is less risky to the lender.
Credit card Installment Loans vs Revolving Credit
R
Mortgage Secured vs Unsecured Debt
S
Small business loan (from a bank) Secured vs Unsecured Debt
S
Principal
The amount of money borrowed
Credit card Secured vs Unsecured Debt
U
Payday loan Secured vs Unsecured Debt
U
Student loan (Federal) Secured vs Unsecured Debt
U
Credit card Variable vs Fixed Rate
V
Revolving credit
an open line of credit that can be used for any purchases as long as you're under the credit limit. Payment amounts vary each pay period based on the size of the debt.
Variable Interest Rate
interest rate can change during the duration of the loan based on the prime rate or an index rate. More unpredictable
Fixed Interest Rate
interest rate remains constant during the duration of the loan. - predictable
Interest Rate
percent that the financial institution charges you for lending you money
Installment Loan
used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal. (usually for a big purchase such as a car or house). Principal amount is fixed.
