| A | B |
|---|
| 20/10 rule | borrow no more than 20% of yearly take-home pay and pay no more than 10% of monthly take-home pay |
| balance | current amount owed on a debt |
| billing cycle | the length of time between billings on an account; usually 25 to 30 days |
| billing statement | a document that a borrower receives, usually monthly, which details all activity on a credit account during the billing cycle |
| Capacity | Can a person repay a loan? |
| Capital | What assets does a person have in order to pay on a loan? |
| Character | Will a person repay a loan? |
| Collateral | an item of value pledged as a guarantee for payment of a loan which can be repossessed by the lender if the loan is not paid back |
| Conditions | Circumstances that may impact a person's ability to repay a loan. |
| Credit Bureau | an agency that researches and collects individual credit information and sells it to lenders/creditors |
| Credit History | record of borrowing and repayment activity |
| Credit Report | record that details a credit history |
| Credit Score | numerical rating of credit worthiness |
| FICO | Fair Isaac Corportation - created the score that is used by lenders to determine a person's credit risk |
| Grace period | The time between the date a customer is billed and the date the payment is due when no interest is charged |
