| A | B |
|---|
| the ability to borrow money for a variety of goods and services up to a limit set by the company issuing the credit | open ended credit |
| a measure of a person’s ability and willingness to make credit payments on time | credit rating |
| a form of security to help guarantee that a creditor will be repaid | collateral |
| the income a person receives (from sources such as take-home pay) | net income |
| the arrangement to receive cash, goods, or services now and pay for them in the future | credit |
| an entity (bank, finance company, credit union, business, or individual) to which money is owed. | creditor |
| a one-time loan that is paid back over a specified period of time and in payments of equal amounts | closed end credit |
| the use of credit for personal needs | consumer credit |
| A collection of information obtained from your creditor reflecting the content of your credit | credit report |
| According to our class material, debt payment-to-income ratio is very important. Experts suggest that you spend no more than what percent of your net income on debt payments. | 20% |
| The following groups of people can see your credit history | lenders, landlords, utility companies |
| An example of open-ended credit | credit card |
| An example of closed ended credit | installment loan |
| required to follow reasonable procedures to make sure that a person's information is correct in their credit report | credit bureau |
