| A | B |
|---|
| credit | An agreement to get money or goods now in exchange for a promise to pay in the future. |
| installemnt loan | Loans repaid in egulr payments over a period of time. |
| multipurpose credit card | A credit card which may be used at many different stores, restaurants and other businesses all over the world. |
| municipal bonds | Govenments obtain credit from these. |
| promissory note | Type of note used for single-payment loans. |
| interest | A fee charged for the use of money. |
| creditor | One who lends money or provides credit. |
| principal | The actual amount of money owed or deposited into an acount, upon which interest is based. |
| repossess | To take back collateral put up for a loan, such as a car, if the loan is not paid back. |
| garnishment | A creditor's legal right to take all or part of a debtor's paycheck for an unpaid debt. |
| maturity date | The date when money invested in a bond or certificate of deposit becomes available to the investor. |
| documentation | The credit process step during which the necessary loan paper work is collected. |
| good credit rating | A measure of a person's ability and willingness to pay debta on time. |
| collateral | Something valuable, such as a house or car, used as a guarantee for a loan that the lender can take if the borrower doesn't repay the loan. |
| credit bureau | An agency that collects information about consumers of credit. |
| usury law | A law that restricts bthe amount of interest that can be charged for credit. |
| Equal Credit Opportunity Act | A federal against denying credit on the basis of gender, age, ethnicity, or other difference. |
| Fair Credit Billing Act | A federal law requiring creditirs to correct billing mistakes brough to their attention. |
| single purpose credit card | A type of credit card that would only be accepted at a local department store. |
| consumers rights | The right to safety, to be heard, to choose, to be informed, to have problems corected, to consumer education and to service. |
| Fair Debt Collection Practices Act | AQ federal law that protects debtors from unfair methods and practices by collection agents. |
| Fair Credit Reporting Act | A federal law giving people the right to now what is in their credit files at credit bureaus. |
| truth in lending law | By law, creditors must give a statement to consumers informing them of the costs and terms of credit. |
| consolidation loan | A loan that combines everal debtsinto one loan with lower payments. |
| work history | An example of a person's character. |
| interest | A fee charged for the use of money. |
| cosigner | A person who guarantees that a loan will be paid. |
| application | The credit form used by the debtor to provide information to the lender. |
| underwriting | The step of the credit process where a file is reviewed for soundness. |
| repossession | To take back colateral put up for a loan, such as a car, if the loan is not paid back. |
| bankruptcy | A legal process in which a person is relieved of debts but creditors can take some or all of the person's assets. |
| garnishment of wages | A creditor's legal right to take all or part of a debtor's paycheck for an unpaid debt. |
| convenience | An advantage of purchasing goods and services on credit. |
| debt obligation | Obligation to pay back what is borrowed. |
| debtor | An individual who borrows money. |
| maturity date | The date when money invested in a bond or certificate of deposit becomes available to the investor. |
