| A | B |
|---|
| credit | making purchases now and paying for them later |
| credit card | a plastic card used to make purchases now and pay for them later |
| principal | the amount of money borrowed or the purchase price of all items bough |
| creditor | any bank or business that extends credit to others; a lender |
| debtor | anyone who owes money; a borrower |
| APR (Annual Percentage Rate) | the interest rate that the user of a credit card must pay |
| interest rate | the fee, expressed as a percentage, that a borrower owes for the use of a creditor's money |
| introductory rate | a temporary interest rate, advertised as a low APR to entice customers to apply for a credit card |
| minimum payment | the smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender |
| finance charge | a fee for borrowing money, added to a monthly credit card bill |
| late fees | additional fees that can be added to a credit card bill if the card holder fails to make at least the minimum payment by the due date |
