| A | B |
|---|
| credit | the privilege of using someone else's money for a period of time. |
| finance charge | the total dollar cost of credit, including interest and all other charges. |
| down payment | payment of part of the purchase price. |
| installment loan | you agree to make monthly payments in specific amounts over a period of time. |
| promissory note | a written promise to repay based on a debtor's excellent credit history. |
| collateral | property that is used as security. |
| cosigner | responsible for paymehnt of the note if you do not pay as promised. |
| credit rating | a person's reputation for paying bills on time. |
| interest | the cost of borrowing money. |
| annual percentage rate | a disclosure required by law that states the percentage cost of credit on a yearly basis. |
| credit application | a form on which you provide information needed by a lender to make a decision about granting credit. |
| credit bureau | a company that gathers information on credit users. |
| statement of account | a record of the transactions completed during the billing period. |
| credit counselor | discusses and suggests actions to take to reduce spending and eliminate credit difficulties. |
| bankruptcy | the legal process of reducing or eliminating an amount owed. |
