| A | B |
|---|
| collateral | something the bank can take from you if you do not repay your loan |
| credit history | how well you have managed your bills and credit in the past |
| installment plan | you agree to pay a fixed amount per month for a specified number of months |
| fixed expenses | the amount you must pay every month for rent, utilities, etc. |
| variable expenses | the amount you usually spend on food, entertainment, etc |
| interest rate | the cost of using credit |
| annual rate | the amount of interest charged per year |
| variable interest rate | interest rate can change |
| fixed interest rate | interest rate never changes |
| simple interest | you are charged interest only on the original amount of the loan |
| annual fee | a yearly charge just for having the card |
| compound interest | interest is charged twice |
| finance charge | a fraction of the annual interest rate on your monthly balance |
