| A | B |
|---|
| credit | agreement to obtain money, goods, or sercies now in exchange for a promise to pay in teh future |
| creditor | lends money or provides credit |
| debtor | borrows money or uses credit |
| interest | "fee" creditors charge for using their money |
| consumer credit | credit used by people for personal reasons |
| commercial credit | credit used by businesses |
| credit rating | measure of a person's ability and willingness to pay debts on time |
| charge account | provided by a store for customers to buy its products |
| installment loans | loans repaid in regular payments over time |
| collateral | something of value that can be taken if a loan is not repaid |
| annual percentage rate (APR) | cost of credit on a yearly basis |
| cash advance | loan given in cash by a credit card company |
| cosigner | someone who agrees to be responsible for a debt if the debtor doesn't repay it |
| grace period | amount of time allowed to repay a debt without having to pay interest |
| capacity | applican'ts ability to repay a loan |
| character | applicant's trustworthiness |
| capital | amount of money applicant has beyond their debt |
| credit limit | maximum amount a card holder can charge on a credit card |
| variable rate | interest rate that fluctuates over time |
| fixed rate | interest rate that always stays the same |
