| A | B |
|---|
| Credit | An arrangement to receive cash, goods, or services now and pay for them in the future. |
| Creditor | An entity to which money is owed. |
| Consumer Credit | The use of credit for personal needs, dates back to colonial times. |
| Interest | A periodic charge in exchange for the use of credit. |
| Closed-end Credit | When you receive a one-time loan that you will pay back over a specified period of time and in payments of equal amounts. |
| Open-end Credit | When you borrow money for a variety of goods and services. |
| Line of Credit | The maximum amount of money the creditor has made availableto you. |
| Grace Period | A time period during which no finance charges will be added to your account. |
| Finance Charge | The total dollar amount you pay to use credit. |
| Net Income | The income you receive. |
| Annual Percentage Rate (APR) | Shows how much credit costs to you on a yearly basis, expressed as a percentage. |
| Collateral | A form of security to help guarentee that the creditor will be repaid. |
| Simple Interest | Interest computed only on the principal. |
| Principal | The amount that you borrow. |
| Minimum Monthly Payment | The smallest amount you can pay and remain a borrower in good standing. |
| Credit Rating | A measure of a person's ability and willingness to make credit payments on time. |
| Co-signing | Agreeing to be responsible for loan payments if the borrower fails to make them. |
| Debt Collectors | Businesses that collect debts for creditors. |
| Indebtedness | The condition of being deeply in debt. |
| Bankruptcy | A legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts. |
