| A | B |
|---|
| Credit | Money borrowed to buy something now, with the agreement to pay for it later |
| Borrower or Debtor | The person borrowing money or using credit |
| Creditor | Person or company who loans money or extends credit |
| Capital | Property you possess that is worth more than your debts |
| Collateral | Property pledged to assure repayment of a loan |
| Repossessed | Ownership of an item purchased on credit is reverted back to the lending institution |
| Balance Due | Principal (amount borrowed) plus interest for the time money is loaned |
| Finance Charge | Total dollar amount of all interest and fees you pay for the use of credit |
| Minimum payment | Least amount you can pay that month under your credit agreement |
| Due Date | When credit payments are due, usually 10-20 days from the date you receive a bill |
| Installment agreement | When you agree to make regular payments for a set period of time |
| secured loan | When goods purchased with a loan serve as collateral for the money loaned |
| line of credit | A pre-established amount that can be borrowed on demand with no collateral |
| deferred billing | Service available to charge customers whereby purchases are not billed to the customer until later |
