| A | B |
|---|
| annual fee | an amount charge card companies levy for the right to use or carry their card. |
| APR | annual percentage rate |
| bankruptcy | the state of being or becoming bankrupt |
| co-signer | is someone who will take responsibility to pay your bills if you are unable to pay them yourself |
| credit union | is similar to a bank, where you can get a checking/savings account, but has members instead of customers. |
| credit bureau | A company that collects information about your credit and gives out a credit report to banks and credit card companies is called a |
| credit line | A line of credit is any credit source extended to a government, business or individual by a bank or other financial institu |
| creditor | creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed |
| credit rating | classification of credit risk based on investigation of a customer's or potential customer's financial resources, prior payment pattern, and personal history or degree of personal responsibility for debts incurred |
| credit report | A detailed report of an individual's credit history prepared by a credit bureau and used by a lender to in determining a loan applicant's creditworthiness |
| finance charge | is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit |
| grace period | period of time after a payment becomes due, as of a loan or life-insurance premium, before one is subject to penalties or late charges or before the loan or policy is canceled |
| interest | Payment in exchange for the use of money over time. You can earn interest by lending your money to a bank. In addition, you pay interest when you borrow money from a bank. The rate of payment can either be fixed or variable throughout the life of the loan or deposit. |
| principal | The amount that one borrows. For example, if one borrows $100,000, the principal amount is $100,000. Interest is calculated over the principal (and often over unpaid interest that accumulates). |
| incentive buying | Premium in the form of extra merchandise, a discount or a gift, offered to the prospective purchaser of an item or service in the hope that this bonus will motivate the purchase of the item. |
| credit score | Your credit score is a 3-digit number calculated off the information in your credit report. Your credit score is integral in helping lenders determine how much of a credit risk you are |
| interest rate | A rate which is charged or paid for the use of money. |
| 5 C's of Credit | Character, capacity, capital, collateral, and conditions |
| credit limit | is a certain amount of money that you are allowed to borrow when using a credit card. |
| Collateral | security pledged for the payment of a loan: He gave the bank some stocks and bonds as collateral for the money he borrowed |
