| A | B |
|---|
| Creditworthy | Having established a credit record that shows you are a good credit risk. |
| Debt repayment plan | An agreement developed cooperatively by a creditor and debtor to reduce payments to a more manageable level and still pay off the debt |
| Debtor | One who buys on credit or receives a loan |
| Down payment | A payment of part of the purchase price that is made as part of a credit agreement |
| Equal Credit Opportunity Act | An act that prohibits creditors from denying credit because of age, race, sex, or marital status |
| Fair Credit Billing Act | A law that requires prompt correction of billing mistakes when they are brought to the attention of a business in a prescribed manner. |
| Fair Credit Reporting Act | A law that gives consumers the right to know what specific information credit bureaus are providing to potential creditors, employers, and insurers |
| Finance charge | The additional amount you must pay for using credit stated in a dollar figure |
| Grace Period | Time period during which no finance charges will be added to an account |
| Installment loan | A type of loan in which you agree to make monthly payments in specific amounts over a period of time |
| Installment sales credit | A credit contract issued by the seller that requires periodic payments to be made at times specified in the agreement with finance charges added to the cost of the purchase |
| Interest rate | The percentage that is applied to a debt, expressed as a fraction or decimal |
| Loan credit | Borrowing money to be used later for some special purpose |
| Maturity date | The date on which a loan must be repaid. |
| Minimum Payment | Least amount due on a credit balance |
| Municipal bonds | Borrowing by state and local governments |
| Principal | The amount of debt to which the interest is applied |
| Promissory note | A written promise to repay based on the debtor’s excellent credit rating. |
| Receipt | A written form that acknowledges payment was made. |
| Regular account | A credit plan in which the seller expect payment in full at the end of a specified period, usually a month |
