| A | B |
|---|
| loan | an amount of money borrowed and repaid with interest |
| credit report | a report detailing an individual's credit history, including payments related to bills, loans, credit accounts and bankruptcies; used to determine one's creditworthiness |
| credit rating | a ranking based on one's credit history and used by financial institutuions for loan and credit approval |
| APR (annual percentage rate) | yearly rate of interest |
| fixed interest rate | interest rate that stays the same over the course of the loan |
| variable interest rate | interest rate that can change over the course of a loan |
| Truth in Lending Act | requires lenders to explain how they compute loan charges |
| loan sharks | individuals who charge exorbitant interest rates on loans |
| payday loan | short-term, high interest loan |
