| A | B |
|---|
| credit | receipt of money either directly or indirectly to buy goods and services with the promise to pay for them in the future. |
| unsecured loan | loan guaranteed only by a promise to repay it. |
| interest | amount of money the borrower must pay for the use of someone else's money. |
| installment debt | type of loan repaid with equal payments, over a specific period of time |
| durable goods | manufactured items that have a life span longer than three years. |
| mortgage | installment debt owed on houses, buildings, or land. |
| finance charge | cost of credit expressed monthly in dollars and cents |
| savings and loan association | depository institution that accepts deposits and lends money. |
| savings bank | depository institution originally set up to serve small savers overlooked by commercial banks |
| credit union | depository institution owned and operated by its members to provide savings accounts and low-interest loans only to its members. |
| finance company | company that takes over contracts for installment debts from stores and adds a fee for collecting the debt. |
| charge account | credit extended to a consumer allowing the consumer to buy goods or services from a particular company and to pay for them later. |
| credit card | credit device that allows a person to make purchases at many kinds of stores, without paying cash. |
| commercial bank | bank whose main functions are to accept deposits, lend money, and transfer funds among banks, individuals, and businesses. |
| annual percentage rate | cost of credit expressed as a yearly percentage |
| credit bureau | private business that investigates a person to determine the risk involved in lending money to that person |
| credit check | investigation of a person's income, current debts, personal life, and past history of borrowing and repaying debts. |
| credit rating | rating of the risk involved in lending money to a specific person or business. |
| collateral | something of value that a borrower lets the lender claim if a loan is not repaid |
| secured loan | loan that is backed up by collateral |
| principal | amount of money originally borrowed in a loan. |
