| A | B |
|---|
| grace period | Is amount of time you get to pay off a debt without having to pay interest charges. |
| finance charge | Is the total amount it costs you to pay for the loan stated in dollars and cents. |
| APR (Annual Percentage Rate) | It determines the cost of your credit on a yearly basis. |
| credit limit | The maximum amount you can spend or charge on a credit account. |
| down payment | Is a portion of the total cost that you pay when you purchase a product. |
| cash advance | you borrow money on a credit card rather than use it to make a purchase. |
| repossess | If you put up something valuable as collateral on a loan, a creditor has the legal right to take back the collateral. |
| unsecured loan | A loan is NOT backed by collateral. |
| secured loan | A loan is backed by collateral. |
| credit bureau | An agency that collects information about you and other consumers of credit. It tells whether you pay bills on time and how much you owe. |
| co-signer | Someone who legally agrees to take responsibility for a person's debt if they cannot repay it. |
| garnishment of wages | a court order to take all or part of a debtor's paycheck if he or she stops making payments |
| principal | is the amount of money you still owe and on which the interest is based. |
| variable rate | the rate changes as interest rates in the banking system change. |
| fixed rate | an interest rate that does not change over time. |
