| A | B |
|---|
| bankruptcy | The legal process of reducing or eliminating an amount owed |
| annual percentage rate | The percentage cost of credit on a yearly basis |
| cosigner | Someone who becomes responsible for payment of a note if you do not pay as promised |
| credit | The privilege of using someone else's money for a period of time |
| credit application | A form in which you provide information needed by a lender to make a decision about granting credit |
| credit bureau | A company that gathers information on credit users and sells that information in the form of credit reports to credit grantors |
| credit counselor | A person who suggests actions to reduce and eliminate credit difficulties |
| credit rating | Your reputation for paying your bills on time |
| down payment | A payments of part of the purchase price that is made as part of a credit agreement |
| finance charge | The total dollar cost of credit, including interest and all other charges |
| installment loan | A loan in which you agree to make monthly payments in specific amounts over a period of time |
| interest | The cost of using someone else's money |
| promissory note | A written promise to repay based on the debtor's excellent credit rating |
| statement of account | A record of the transactions that you have completed with a business during a billing period |
| collateral | Property that is offered as security for some loan agreements |
