| A | B |
|---|
| principal | the money you borrow |
| interest | the amount you pay to use someone else's money |
| APR | the cost of the loan per year as a percentage |
| annual fee | charge you pay each year for the privelege of using credit |
| credit limit | the maximum amount of credit a lender will extend to a customer |
| finance charge | the actual cost in dollars of using credit |
| loan term | the length of time you have to pay off the loan |
| grace period | the length of time you have before you start paying interest |
| late fee | a penalty for making a payment after the due date |
| debt | the entire amount of money you owe to lenders |
| capital | items you could sell to pay back a loan |
| capacity | ability to repay a loan, as determined by the lender |
| character | trustworthiness & a history of being responsible |
| credit report | a record of personal financial transactions |
| credit score | a number that reflects your credit worthiness |
| collateral | an asset of value a lender could take from you if you don't repay loan |
| 70-20-10 Rule | a good way to keep debt in check |
| bankruptcy | legal process of getting out of debt |
