| A | B |
|---|
| Credit | an arangement to receive cash, |
| consumer credit | the use of credit for personal needs |
| creditor | an entity that lends money (a bank) |
| closed-end credit | a one-time loan that you pay back over a specified period in equal amounts |
| open-end credit | a loan with a certain limit on the amount of money you can borrow |
| line of credit | the maximum amount of money you are allowed to borrow |
| grace period | a time period where no finance charges will be added |
| finance charge | the total dollar amount you pay to use credit |
| net income | the income you receive |
| annual percentage rate (ARP) | the cost of credit on a yearly basis, as a percentage |
| collateral | a form of secruity to help guarantee the creditor will be repaid |
| simple interest | interest computed only on the principal, amount you borrowed |
| minimum monthly payment | the smallest amount you can pay |
| credit rating | a measure of a person's ability and willingness to make payments on time |
| bankruptcy | legal process for selling most of a consumer's property to satisfy debts they cannot pay in exchange for relieving debt obligations |
| cosigning | agreeing to take responsibility for a loan if the other person fails to pay |
| FDCPA | Fair Debt Collection Practices -prohibits unfair collection practices from collectors |
| CCCS | Consumer Credit Counseling Service-provide debt counseling |
| revolving credit | allows you to carry a balance from one month to another and pay interest on unpaid balance |
| Debt consolidation loan | a large loan used to pay off a number of smaller loans |
