| A | B |
|---|
| credit | supplying of money, goods, or services at present in exchange for the promise of future payment |
| creditor | the business or organization extending the credit |
| principal | the original amount borrowed |
| secured credit | backed by a pledge of property |
| collateral | property pledged to guarantee repayment |
| closed-end credit | one-time extension of credit for specific $ and time |
| open-end credit | line of credit |
| installment | set portion the borrower must pay at certain intervals |
| finance charge | cost of using credit |
| credit history | pattern of behavior in regard to repaying dbt |
| credit bureau | firm that collects info about customers credit |
| credit report | record of consumer's transactions and payment patterns |
| credit rating | evaluation of a consumer's credit history |
| credit score | numerical rating based on creditworthiness |
| consignor | person with established credit who signs along with the borrower |
| APR | annual percentage rate |
| grace period | period of time in which to pay the balance w/o finance charges |
| credit limit | max amount of credit extended to borrower |
| consumer finance co | businesses that specialize in making small or personal loans |
| loan sharks | unlicensed lenders who operate illegally and charge excessive interest |
| down payment | portion of a purchase price paid by cash or check |
| balloon payment | final payment is larger than other payments |
| acceleration clause | seller has the right to declare the whole balance due if payment is missed |
| add-on clause | allows additional purchases to be added to original purchase |
| right of rescission | 3 days to cancel a loan |
| delignquent | overdue or behind in payments |
| default | notice of failure to fulfill obligations of the loan |
| repossession | taking away property due to failure to make payments |
| collection agency | business that collects unpaid debt for others |
| lien | claim upon property to satisfy debt |
| garnishment | legal withholding from wages |
| credit counseling | guidance provided by trained people to overcome debt problems |
| debit consolidation loan | combining all debt and making one payment |
| bankruptcy | legal relief from repaying certain debts |
