| A | B |
|---|
| annual percentage rate (APR) | The rate of interest charged over a year. |
| collateral | Something of value held by a creditorin case a person is unable to repay a loan. |
| cosigner | A responsible person who signs a loan agreement with a borrower and sharesthe obligation of repayment. |
| credit | The present use of future income that allows consumers to buy goods and pay later. |
| credit rating | A creditor’s evaluation of a person’s willingness and ability to pay debts. |
| equity | The value of a house minus what is owed. |
| finance charges | The total amount a borrower must pay for the use of credit. |
| installment account | Allows the customer to pay for expensive items according to a set schedule of payments. |
| interest | The price paid for the use of money over time. |
| revolving charge account | Allows the customer to pay bill in full each month or spread the payments out. |
