| A | B |
|---|
| credit | An amount of money someone is willing to loan another person based on trust and the expectation that the money willbe repaid with interest |
| interest | Payment for the use of money |
| Annual percentage rate | The total annual percentage amount it will cost a person to use credit |
| annual fee | A once-a-year fee charrged by many card issuers in addition to the interest charged on purchases |
| finance charge | The actual dollar cost of using credit, which is calculated by the lender |
| loan term | The length of time covered by a loan |
| grace period | The time allowed, usually 25 days, in which new credit-card purchases can be paid off, if there is no previous balance, without being charged interest |
| credit report | An historical account of how a person has used credit |
| credit history | A person's payment activity |
| debt | The entire amount of money a person owes to lenders |
| bankruptcy | A legal process that allows someone deeply in debt to create a plan to get out of debt |
