| A | B |
|---|
| credit | money borrowed to buy something immediately with the agreement to pay it back at a later date |
| capital | property one possesses that is worth more than one's debts. |
| collateral | property pledged to assure repayment of a loan |
| finance charge | the interest that is paid for the use of credit |
| line of credit | a pre-established amount of money that can be borrowed on demand without collateral |
| deferred billing | a service that is available to charge customers where purchases are not billed to the customer until a later date |
| open-ended credit | 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 that limit |
| annual percentage rate | the cost of credit that is expressed in yearly terms |
| closed-end credit | a loan for a specific amount that must be repaid in full along with finance charges by a stated date |
| service credit | an agreement to have a service performed now and pay for it at a later date |
| loan sharks | lenders who are unlicensed and charge illegally high interest rates |
| usury laws | laws that set a maximum interest rate that may be charged for a loan. |
| pawnbroker | a legal business that makes high-interest loans based on the value of personal possessions pledged as collateral |
| principal | amount borrowed |
