| A | B |
|---|
| Money Borrowed to buy something now, with the agreement to pay for it later. | Credit |
| Property pledged to assure repayment of a loan. | Collateral |
| The interest/costs you pay for the use of credit. | Finance Charge |
| Pre-established amount that can be borrowed on demand with no collateral. | Line of Credit |
| A service available to charge customers whereby purchases are not billed to the customer until later. | Deferred Billing |
| An agreement to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again, whenever the balance falls below the limit. | Open-Ended Credit |
| The cost of credit, expressed as a yearly percentage. | Annual Percentage Rate (APR) |
| A loan for a specific amount that must be repaid, in full, including all finance charges, by a stated due date. | Closed-End Credit |
| A company that gathers, stores, and sells credit information to business subscribers. | Credit Bureau |
| A written statement of a consumer's credit history, issued by a credit bureau to its business subscribers. | Credit Report |
| Loan for which the interest rate does not change (up or down) over the life of the loan. | Fixed-Rate Loan |
| Amount borrowed on which the borrower pays interest | Principal |
| Part of the purchase price paid in cash up front, reducing the amount of the loan. | Down Payment |
| A rule suggested by credit counselors to limit credit purchases on charge accounts. | 20/10 Rule |
| A reorganization form of bankruptcy for businesses that allows them to continue operating under court superivsion as they repay their restructured debts. | Chapter 11 Bankruptcy |
| A liquidation form of bankruptcy for individuals that wipes out most debts in exchange for giving up most assets. | Chapter 7 Bankruptcy |
| A reorganization form of bankruptcy for individuals that allows debtors to keep their property and use their income to pay a portion of their debts over three to five years. | Chapter 13 Bankruptcy |
| Visa, Discover, MasterCard | Bank Credit Cards |
| Process of transforming plain (readable) text into cyper (unreadable text) for security or privacy. | Encryption |
| The amount of time allowed to a borrower before interest begins to accrue on a balance. | Grace Period |
| The amount a borrower pays a lender in order to use the lender's money. | Interest |
| A closed-end credit plan with a house or condominium as collateral. | Mortgage |
| Cards representing charge accounts extended by merchants such as Old Navy, WalMart, and others. | Retail Credit Cards |
| Funds loaned with no pledge of collateral. | Unsecured Loan |
| Funds loaned with a pledge of collateral. | Secured Loan |
