| A | B |
|---|
| Open-Ended Credit | Another name for Revolving Credit |
| Closed-Ended Credit | Another name for Installment Credit |
| Service Credit | given usually with no interest charged |
| Banks | Most common place to get an installment loan |
| Finance Companies | Charge very high rates to consumers who don't qualify for other types of credit |
| Pawn Brokers | Gives you a loan for the value of an item you own |
| Credit Card Companies | Most common source of credit |
| FICO Score | A three digit number representing your credit history |
| Credit Bureau | Gathers, stores and sells information about your credit history |
| Character | Will you repay the debt |
| Capacity | Can you repay the debt |
| Simple Interest | Principal x Rate x Time |
| True dollar cost of using credit | Finance Charge |
| Chapter 11 | Re-organization plan for businesses to pay back debts |
| Chapter 7 | Wipes out most debt in exchange for giving up most assets |
| Chapter 13 | Re-organization plan for individuals to repay most debt |
| Bankruptcy | Legal process that relieves debtors of their debts |
| The fastest growing crime | Identity Theft |
| Snowballing debt | a plan to get out of debt where you pay off the smallest debt first |
| Interest rate increases drastically if you make a late payment | Universal default clause |
