| A | B |
|---|
| Finance charge | the total dollar amount you pay to use credit |
| Collateral | something of value that a borrower lets the lender claim if a loan is not repaid |
| 3 C's of Credit | Character (credit history), Capacity (ability to repay), Capital (assets) |
| Chapter 7 | The chapter of the Bankruptcy Code providing for "liquidation" (i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors). |
| Repossession | taking away property due to failure to repay the debt |
| APR | Annual percentage rate; the annual rate of interest that is charged for using credit |
| Lien | the legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation |
| Default | failure to pay back a loan |
| Consumer Credit Counseling Services | a nonprofit organization that provides debt counseling for individuals with serious debt problems |
| Credit reporting agencies | Equifax, Transunion, and Experian keep a record of consumer's credit transactions |
| Installment credit | a type of closed credit where the loan is repaid with interest in equal periodic payments. Example: car loan, mortgage |
| Revolving credit | a type of open credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card |
| Chapter 11 | section of Bankruptcy law that allows businesses to reorganize, continue functioning and pay creditors equitably according to a court-approved plan |
| Predatory lending | take advantage of ill-informed consumers through excessively high fees |
| FICO score | a credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of digit numbers ranging from 300-850 |
| Truth in lending | credit legislation that is federal they have to tell you the truth about their lending. Have to tell the whole truth in lending practices |
