| A | B |
|---|
| Borrower | Someone who receives something with a promise to return it or its equivalent |
| Closed‐end credit | A loan of a certain amount of money that a borrower must repay in a specified number of equal payments. Also known as installment credit |
| Collection agency | Businesses hired by lenders to pursue payments on debts that borrowers have not paid back according to the terms of the credit contract |
| Co‐signer | A person who is equally responsible for paying back debt under the credit terms |
| Credit | Refers to goods, services and/or money received in exchange for a promise to pay back a definite sum of money at a future date |
| Credit history | A record of the borrower’s past loans and credit‐related transactions |
| Credit limit | The maximum dollar amount that can be borrowed |
| Credit report | A record of a person’s use of credit |
| Credit reporting agencies | Agencies that create credit reports based on the information they receive from lenders regarding a borrower’s account history with that lender. Sometimes called credit bureaus |
| Credit score | A numerical summary of your credit history that indicates your credit worthiness (likelihood of repaying a loan as agreed) |
| Foreclosures | When a borrower fails to keep up with mortgage payments and the lender takes possession of the property |
| Lender | A person or organization who makes funds available for others to borrow |
| Open‐end credit | A line of credit established in advance so that a borrower does not have to apply for credit each time new credit is desired. Also known as revolving credit |
| Tax lien | A legal claim by a government entity to take an individual’s property or income when their taxes are not paid in full |
