| A | B |
|---|
| principal | The amount of money someone is willing to loan you. Also the amount that is still owed on a loan. |
| interest | A charge for a loan, usually calculated as a percentage of the principal. |
| annual percentage rate (APR) | The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed. |
| annual fee | An amount that credit card companies can charge for the use of a credit card. |
| credit limit | This is the maximum amount of credit a lender will extend to a customer. |
| finance charge | Usually seen on credit card statements to represent the actual dollar cost of using credit to maintain a balance. |
| loan term | The length of time you have to pay off a loan. |
| grace period | On a credit card, the length of time you have before you start accumulating interest on an unpaid balance. |
| universal default | A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment. |
| debt | The entire amount of money you owe to lenders. |
| late fee | A penalty on all types of credit for making a payment after its due date. |
| over-the-limit fee | A fee on credit cards for making charges above your credit limit. |
| credit score | A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower. |
| credit report | A detailed record of your personal credit and financial transactions. |
| credit history | A record of how you have repaid your credit obligations. |
