annual percentage rate
Yearly borrowing cost
Annual percentage rate is the yearly cost of borrowing money, expressed as a percentage that includes interest and fees.
Often abbreviated APR, it allows comparison between loans and credit cards with different fee structures: The card offers 0% APR for the first twelve months.
A lower APR means less expensive borrowing.
Numerical measure of borrower reliability
- creditworthinessAbility to repay debts
- credit historyRecord of past borrowing
- credit reportRecord of borrowing behavior
- credit utilizationBorrowed portion of limit
revolving credit · credit limit · credit inquiry · default · bankruptcy · debt · balance · minimum payment
Act of revealing information
- usury lawsStatutes limiting interest rates
- fair lendingNondiscriminatory loan provision
- transparencyState of being see-through
- fine printMiniature contractual text
terms and conditions · compliance · federal reserve · predatory lending · consumer protection
Secured home loan
- auto loanCredit for vehicle purchase
- personal loanUnsecured individual borrowing
- student loanBorrowed funds for tuition
- refinanceObtain new loan terms
lender · borrower · preapproval · origination · closing costs · fixed-rate · adjustable-rate · term
Elements merging progressively
- simple interestInterest on principal alone
- compound interestReturns on reinvested earnings
- daily rateCharge for one day
- nominal rateInterest before adjustments
variable rate · fixed rate · margin · base rate · spread · amortization · accrual · periodicity
Cost of borrowing money
- interest chargeCost of borrowing money
- origination feeLender's upfront service cost
- closing costsFees finalizing property purchase
- penaltyPunishment for wrongdoing
late fee · prepayment penalty · markup · surcharge · total cost · hidden fees · service charge · processing fee
credit score
Numerical measure of borrower reliability
- creditworthinessAbility to repay debts
- credit historyRecord of past borrowing
- credit reportRecord of borrowing behavior
credit utilization · revolving credit · credit limit · credit inquiry · default · bankruptcy · debt · balance · minimum payment · grace period
disclosure
Act of revealing information
- usury lawsStatutes limiting interest rates
- fair lendingNondiscriminatory loan provision
- transparencyState of being see-through
fine print · terms and conditions · compliance · federal reserve · predatory lending · consumer protection
mortgage
Secured home loan
- auto loanCredit for vehicle purchase
- personal loanUnsecured individual borrowing
- student loanBorrowed funds for tuition
refinance · lender · borrower · preapproval · origination · closing costs · fixed-rate · adjustable-rate · term · principal
compounding
Elements merging progressively
- simple interestInterest on principal alone
- compound interestReturns on reinvested earnings
- daily rateCharge for one day
nominal rate · variable rate · fixed rate · margin · base rate · spread · amortization · accrual · periodicity · yield
finance charge
Cost of borrowing money
- interest chargeCost of borrowing money
- origination feeLender's upfront service cost
- closing costsFees finalizing property purchase
penalty · late fee · prepayment penalty · markup · surcharge · total cost · hidden fees · service charge · processing fee · points
- Consumer Creditcredit cards, credit score, credit scores, interest rates, personal loans
- loan paymentsmonthly payment, loan payment, minimum payment, loan repayment, payment schedule
- loan termsunsecured loans, interest rate, loan term, short-term, secured loans
- predatory lendingpayday loans, title loans, loan sharks, loan sharking, usury
annual percentage rateone-time fee
Single, non-repeating payment
flat fee · single payment · fixed fee · lump sum · origination fee
annual, annually, annuals, annuity, annuities, anniversary, anniversaries, percent, percentage