| A | B |
|---|
| credit | a tool to buy something now and pay for it later. |
| microloans | small, short-term loans that help hardworking people fund businesses in low-income communities as part of a plan to reduce poverty. |
| principal | money someone borrows you. |
| interest | the amount you pay to use someone else's money. |
| simple interest formula | I=PRT |
| I | interest |
| P | principal |
| R | interest rate |
| T | time |
| fixed interest rates | stay the same for the life of the loan or account. |
| variable interest rate | change at specified times, such as every month or every year. |
| maturity date | the final payment of the loan |
| loan term | the amount of time you're obligated to make payments. |
| annual fee | a yearly fee for having an open account. |
| origination fee | a charge to process your loan |
| credit limit | the maximum amount you can borrow at any one time. |
| grace period | the amount of time before interest starts accumulating on charged purchases. |
| down payment | money you pay upfront toward the purchase to reduce the loan amount. |
| debt | the total amount that a person owes to others. |
| garnish | when a lender takes away your wages since you fail to make your payments. |
