| A | B |
|---|
| annual percentage rate (APR) | (ARP) the rate at which interest is charged for credit on a yearly basis. |
| cash advance | Using a credit card to borrow money rather than to charge a purchase. |
| credit bureau | An agency that collects information about customers of credit. |
| credit limit | The maximum amount a person can spend or charge on a credit account. |
| cosigner | A person who signs a loan for someone else and is responsible for repaying the loan if the borrower dosen't repay it. |
| down payment | A portion of the total cost of an item tht is paid at the time the item is purchased. |
| finance charge | The total amount it costs to finance a loan, including interest and fees, stated in dollars and cents. |
| garnishment of wages | A creditor's legal right to take all or part of a debtor's paycheck for an unpaid dept. |
| grace period | An amount of time to pay off a debt without having to pay interest on it. |
| principal | The actual amount of money owed or deposited in an account, 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. |
| secured loan | A loan that is backed by collateral. |
| unsecured loan | A loan that is not backed by collateral. |
| variable rate | Interest rate on a loan that changes as interest rates in the banking system change. |
