| A | B |
|---|
| Credit | the right to buy something now and pay for it later |
| short term credit | means that you pay for an item in a short period of time |
| long term credit | means that you pay for an expensive item over a several years |
| finance charge or interest | a fee paid for the use of credit |
| credit application | a form on which you report information a bank or store will use to decide if you should receive credit |
| credit rating | a record of how dependable you have been in making credit payments |
| Credit limit | the maximum balance a customer can have on an account |
| Charge Account | an agreement with a store that allows a customer to buy merchandise and pay for it later |
| Bank credit card | allows a customer to make credit purchases at many different stores and businesses |
| installment contract | an agreement to pay a store an amount plus interest each month for a purchase such as an appliance or furniture |
| Down payment | part of an installment purchase that is paid immediately rather than in installments |
| Cash advance | small loan made on a bank credit card |
| Annual Percentage Rate APR | monthly cost of credit converted to a yearly cost |
| Note | written promise to repay a loan - may also be called a promissory note |
| Principal | the amount of money borrowed |
| maturity date | when the loan must be repaid |
| note payable | a loan that you must repay on a certain date |
| note receivable | a loan that will be repaid to you on a certain date |
| quarterly | means four times a year (every 3 months) |
