| A | B |
|---|
| credit | a medium of exchange that allows individuals to buy goods or services now and pay for them later. |
| closed-end credit | a loan for a specific amount that must be repaid with finance charges by a specified date. |
| finance charge | the total amount paid by a borrower to a lender for the use of credit. |
| contract | a legally binding agreement between a borrower and a creditor. |
| principal | the amount of money borrowed on a loan. |
| open-end credit | an agreement that allows the borrower to use a specific amount of money for an indefinite period of time. |
| secured loan | a loan that requires collateral. |
| collateral | property that a borrower promises to give up in case of default. |
| unsecured loan | a loan made on the strength of a signature alone. |
| cosigner | a responsible person who signs the loan with the person to whom the loan is granted and promises to repay the loan if the borrower fails to pay. |
| creditworthy | having the assets, income, and tendency to repay debt. |
| credit report | record of a person’s credit history and financial behavior. |
| credit score | numerical measure of a person’s creditworthiness at a particular point in time. |
| annual percentage rate (APR) | the annual cost of credit a lender charges. |
| credit card | a plastic card that allows the holder to make credit purchases up to an authorized amount. |
| cash advance | a loan against the available credit on your account. |
| store credit card | s issued primarily by a major department store chain that permits the user to charge purchases only with the merchant issuing the card. |
| travel and entertainment card | credit cards that are typically used for business and usually require the user to pay the entire balance each month. |
| regular charge account | an account that lets an individual charge goods and services in exchange for a promise to pay in full within 25 days of the billing date. |
| revolving credit account | a type of credit agreement that offers a choice of paying in full each month or spreading payments over a period of time. |
| acceleration clause | a statement in a contract that allows the creditor to require full and immediate payment of the entire balance if you miss a payment or fail to abide by the terms of the contract. |
| grace period | the time between the billing date and the start of interest charges. |
