| A | B |
|---|
| credit | The supplying of money, goods or services right now with the promise to pay in the future |
| creditor | The person,k business or organization that lends the money, goods or service |
| collateral | the "thing" that is pledged as backup to repay the loan |
| closed end credit | One time extension of credit for a specific amt and time period. EX=student loan |
| open-end credit | credit that can be used repeatedly. EX=credit card |
| credit history | pattern of past behavior in repaying debt |
| credit report | a record of your transactions and payments |
| credit score | a number that represents how easily you can get a loan |
| cosigner | Person who signs with the borrower to help guarantee the loan |
| APR | Annual Interest Rate; amount charged to borrow money |
| down payment | a portion of the price due at the time of purchase which reduces the size of the loan |
| delinquent | late payments |
| repossession | taking away property if you fail to pay |
| collection agency | a business that collects unpaid debts |
| credit counseling | guidance by trained people who help consumers learn to live within their means |
| bankruptcy | a legal way to help you repay debts |
| capacity | the person's ability to pay back the money |
| capital | The money that you have to back up the loan |
| character | the personality traits that creditors look at to decide if you should get a loan |
