| A | B |
|---|
| Annual fee | An amount of money charged on a yearly basis for the privilege of using certain kinds of credit |
| Annual percentage rate (APR) | Rate of interest expressed as a yearly percentage |
| Bank credit card | A type of credit issued by banks that enables the cardholder to make purchases nationwide (examples = Visa and MasterCard) |
| Budget credit account | A form of short-term credit often set up for 60- or 90-day periods with a payment due every 30 days |
| Collateral | Anything of value belonging to the borrower which is pledged to the lender to guarantee that the loan will be repaid |
| Commercial bank | Full-service bank offering a variety of banking services including checking and savings accounts |
| Credit Card Accountability | Responsibility |
| Credit | The arrangement by which businesses or individuals can purchase now and pay later |
| Credit agency | Business whose purpose is to maintain files of credit information on individuals and businesses |
| Credit limit | The maximum amount of money that can be owed on a credit account |
| Credit rating | The score assigned to a borrower based on previous loans |
| Credit union | A financial cooperative set up to provide savings and credit services to its members; usually within a business or a labor union |
| Customer loyalty | The customer's preference for a business; usually expressed in regular purchases from the business |
| Down payment | A partial payment made at the time an item is purchased; the remaining balance is paid later |
| Equal Credit Opportunity Act | A federal law which attempts to make the granting of credit fair by prohibiting the denial of credit based on the applicant’s gender |
| Fair Credit Billing Act | A federal law that specifies the time period in which a business must handle a credit customer’s complaint or inquiry about his/her bill |
| Fair Credit Reporting Act | A federal law which gives consumers the right to inspect the files of their credit history at any credit agency and to have mistakes corrected |
| Finance charge | Interest charged on the outstanding balance of a credit account |
| Installment credit account | A type of credit account set up to handle one total amount of credit which is to be paid off in regular installments |
| Interest | The fee which lenders charge borrowers for the use of credit |
| Interest rate | The percentage figure used in calculating interest charges |
| Inventory level | The amount of goods on hand |
| Lien | A legal claim to an item of property which protects the seller if the buyer does not complete his/her payments |
| Outstanding balance | The remaining amount that is owed to the creditor after the credit user has made a partial payment on his/her account |
| Principal | The original amount of a loan on which the amount of interest is based |
| Promissory note | A legal form signed by a borrower promising to repay a loan |
| Regular credit account A credit account which allows credit users to buy at any time during a set period | usually 30 days; also called an open account |
| Retail Installment Sales Acts (RISA) | State laws governing installment sales of personal property |
| Revolving credit account | A type of credit account which limits the total amount of money that may be owed and charges interest on outstanding balances |
| Sales finance company | A business that purchases borrowers’ contracts from sellers and receives the borrowers’ payments |
| Savings and loan association | A financial institution which offers savings accounts and makes loans to borrowers |
| Secured loan | A type of loan in which the borrower pledges to the lender some valuable possession as collateral |
| Service credit | Credit used for utilities that have been consumed but not yet paid for |
| Title | Right of ownership or a document showing the right of ownership |
| Travel and entertainment card | A type of credit card frequently used by travelers to pay bills in restaurants |
| Truth-in-Lending Act | A federal law that protects consumers who use credit and makes it easier for them to compare the terms of different credit systems; also known as Consumer Credit Protection Act |
| Unsecured loan | An amount of money borrowed by an individual or a business simply by signing a promissory note promising to repay the loan |
