| A | B |
|---|
| Annual Percentage Rate (APR) | Indicates how much credit costs on a yearly basis. |
| Capacity | Your ability to pay (income) |
| Capital | How much you have beyond what you owe. |
| Cash Advance | Borrow money on a credit card. |
| Character | Earned by paying bills on time and being a trustworthy, reliable, stable person. |
| Collateral | Security to help guarantee that the creditor will be repaid. |
| Cosigner | Responsible for a loan if you, the original debtor, do not pay. |
| Credit Application | A form on which you provide information needed by a lender to make a decision about granting credit or approving a loan. |
| Credit Bureau | An agency that collects information on how promptly people and businesses pay their bills |
| Credit History | Indicates the amount of debt you have and your payment history. |
| Credit Insurance | Insurance that repays the balance of the amount owed if the borrower dies or becomes disabled prior to the full settlement of the loan. |
| Credit Limit | Maximum amount you can borrow. |
| Credit Record | A report that shows the debts you owe, how often you use credit, and whether you pay your debts on time. |
| Creditworthy | Having established a credit record that shows you are a good credit risk. |
| Debt Repayment Plan | An agreement developed cooperatively by a creditor and debtor to reduce payments to a more manageable level and still pay off the debt. |
| Equal Credit Opportunity Act | The credit application can be judged only on the basis of financial responsibility that credit denial cannot be based on sex, family, religion, etc. |
| Fair Credit Billing Act | A law that requires prompt correction of billing mistakes when they are brought to the attention of a business in a prescribed manner. |
| Fair Credit Reporting Act | A law that gives consumers the right to know what specific information credit bureaus are providing to potential creditors, employers, and insurers. |
| Finance Charge or Fees | Cost of credit stated in a dollar figure |
| Grace Period | Time period during which no finance charges will be added to an account. |
| Interest Rates | Percentage that is applied to debt is normally expressed as a percent or fraction. |
| Maturity Date | Date on which a loan must be repaid |
| Principal | Amount of money borrowed. |
| Receipt | A written form that acknowledges payment was made. |
| Simple Interest | an expression of interest based on a one-year period of time. |
| Time Factor | Length of time for which interest will be charged. |
| Truth-in-Lending Law | A law that requires that you be told the cost of a credit purchase in writing before you sign a credit agreement. |
