| A | B |
|---|
| secured loan | A loan that is backed by collateral. |
| unsecured loan | A loan that is not backed by collateral. |
| credit bureau | An agency that collects information about you and other credit consumers. |
| annual percentage rate (APR) | This determines the cost of your credit on a yearly basis. |
| principal | The amount of money owed and upon which the interest is calculated. |
| grace period | The number of days available to pay a credit card balance without having any interest charged. |
| down payment | An initial portion of the total cost paid with cash or with a check. |
| cosigner | Someone who agrees to make payments on a loan if you fail to do so. |
| finance charge | The cost of credit stated in dollars and cents. |
| variable rate | A type of loan where the rate changes as interest rates in the banking system change. |
| credit limit | The maximum amount you can spend or charge on a credit account. |
| repossess | The legal right to take back collateral. |
| cash advance | Something you get when you borrow money on credit card rather than use it to make a purchase. |
| garnishment of wages | Is when a court issues an order requiring your employer to withhold a certain amount of your paycheck and send it directly to your creditor or institution to whom you owe money, until your debt is paid off. |
| fixed rate | A rate that stays the same for the life of a loan, or for a portion of the loan term, depending on the loan agreement. |
