| A | B |
|---|
| Credit | someone is willing to loan you money in exchange for a promise to repay it |
| Principal | the money someone is willing to loan you |
| Interest | the amount of money you have to pay to use someone else's money |
| APR | tells you the cost of the loan per year as a percentage of the amount borrowed |
| Annual Fee | a yearly charge you pay for the privelage of using credit |
| Credit Limit | the maximum amount of credit a lender will extend to a customer |
| Finance Charge | represents the actual dollar cost of using credit to maintain a balance |
| Origination Fee | a charge for setting up the loan |
| Loan Term | the length of time you have to pay off the loan |
| Grace Period | the length of time you have before you start accumulating interest |
| Over-The-Limit Fee | fee charged for spending more then your credit limit |
| late Fee | a penatly fee for making a payment after the due date |
| Universal Default | credit card companies can hike up your interest rate if you make just one late payment |
| Debt | the amounts you borrow |
| Credit Report | a record of your personal financial transactions |
| Credit Score | a number that reflects your creditworthiness based on the 4 C's |
