- A sum paid or charged for the use of money or for borrowing
money. Interest is usually charged as a percentage of the amount
- Interest Rate:
- This is the percentage of the outstanding balance charged.
- The initial amount borrowed. This represents the
amount of cash the Credit Union will give you. The
amount you must repay is the principal plus any interest
gathered over the life of the loan.
- The payment is the amount of money you will be sending the
credit union each pay period.
- Pay Period:
- The credit union offers many repayment plans which vary in
how often you are required to make a payment. The payment options
- Monthly: Payments are made once each month for a total of
12 payments per year.
- Semi-Monthly: Payments are made twich each month (on the first
and 15th). This means you would make 24 payments per year.
- Bi-Weekly: Payments are made every two weeks. Since some months
are longer than others, you might make more than two payments
in a month. You would ultimately make 26 payments per year.
- Weekly: Payments are made each week, resulting in 52 payments
- The term is the amount of time you will take to pay back