Terms to Know
1. Amount Financed: the total dollar amount of the credit that is provided to you.
2. Annual Percentage Rate or “APR”: a measure of the cost of credit expressed as a yearly rate.
3. Finance Charge: the dollar amount you pay to use credit.
4. Fixed Rate Financing: the interest rate and the payment remains the same over the life of the loan. Equal monthly payments of principal and interest are made until the debt is paid in full.
5. Late Payment Fee: a fee that is charged when payment is made after its due date.
6. Monthly Payment Amount: the amount due each month to repay the credit agreement.
7. Term of Loan: the total number of months you have to pay the credit obligation.
8. Total of Payments: the amount paid after all payments have been made as scheduled.