| A | B |
|---|
| credit | The supplying of money, goods, or services at present in exchange for the promise of future payment. |
| creditor | The business of organization that extends the credit. |
| principal | The original amount borrowed. |
| secured credit | Backed by a pledge of property. |
| collateral | Property that is pledged to guarantee replayment. |
| closed-end credit | A one-time extension of credit for a specific amoung and time period. |
| open-end credit | Sometimes referred to as a line of credit- can be used repeatedly. |
| installment | A set portion of the loan amoung that the borrower must pay at regularly scheduled intervals. |
| finance charge | The cose of using credit, including interest and any fees. |
| credit history | Pattern of past behavior in regard to repaying debt. |
| credit bureau | A credit reoprting agency, a firm that collects information about the credit-worthiness of consumers. |
| credit report | A record of a particular consumer's transactions and payment patterns. |
| credit rating | An evaluatioon of a consumer's credit history. |
| credit score | A numerical rating, based on credit report information that represents a person's level of creditworthiness. |
| cosigner | A person with strong estabklished credit history who signs the credit applicationand contract along with the borrower. |
| APR | Annual percentage rate, is the annual rate of interest that is charged for using credit. |
| grace period | Period of time during which the balance may be paid in full to avoid finance charges. |
| credit limit | The maximum amount of credit that the creditor will extedn to the borrower. |
| consumer finance companies | Businesses that specialize in making small or personal loans. |
| loan shark | Unlicensed lenders who operate illegally and charge excessive interest. |
| down payment | A portion of a purchase price paid by cash or check at the time of purchase. |
| balloon payment | A final payment that is much larger than the other installments. |
| acceleration clause | Gives the seller the right to declare the whole balance dur if the buyer misses even one installment payment. |
| add-on clause | Allows additional purchases to be added to an installment contract, with earlier purchased used as security for later ones. |
| right of rescission | If you are pledging your home as security for a loan or other credit transaction, you have the right to cancel the loanwithin three business days. |
| delinquent | An overdue/unpaid payment. |
| default | Failure to fulfill the obligations of the loan and a warning that the creditor is taking more agressive actions toward collecting the debt. |
| repossession | Taking away property due to failure to make loan or credit payments. |
| collection agency | After exhausting its own efforts to get a consumer to make past-due payments, a creditor may turn the account over to a business that collects unpaid debt. |
| lien | A claim upon property to satisfy a debt. |
| garnishement | The legal withholding of a specified sum from a person's wages in order to collect debt. |
| credit counseling | Guidance provided by trained people who help consumerslearn to live within their means. |
| debit consolidation loan | Combines all existing debt into a new loan with a more manageable payment schedule. |
| bankruptcy | Legal relief from repaying certain debt. |
