| A | B |
|---|
| principal | original amount borrowed |
| credit | supplying goods or services for promise of future payment |
| collateral | property pledged for a loan |
| commercial credit | credit for business purposes |
| cosigner | person with established credit who signs with borrower |
| credit report | record of consumer transactions and payment patterns |
| credit score | numerical rating representing worthiness |
| grace period | time to pay full balance to avoid finance charges |
| right of recission | cancel a loan within 3 business days |
| security interest | seller retains ownership |
| holder in due course | credit contract can be sold |
| acceleration clause | if payment is missed, entire balance is due |
| disclaimer | all terms must be in writing |
| deficiency clause | seller has right to repossess |
| balloon clause | final payment is at least 2 times greater |
| rule of 78s | paying off loan early does not save $ |
| cosigner guarantee clause | someone else must sign loan with you |
| default payment clause | establishes amount of late fee |
| mutual assent | signing the contract implies you have read and agree |
| finance charge | total cost of using credit |
