| A | B |
|---|
| Creditor | One who lends money or provides credit |
| Big-Ticket Items | High priced items often paid for in installments |
| Credit | The opportunity to obtain money, goods, or services now in exchange for a promise to pay later |
| Commercial Credit | Type of credit used by businesses |
| Credit Rating | the measure of your willingness and ability to pay |
| Installment Payments | Equal payments made over a period of time |
| Consumer Credit | Credit used for personal reasons |
| Charge Account | This gives you the ability to purchase up to a certain amount in a department store |
| Debtor | Someone who borrows money or uses credit |
| Credit Limit | The maximum amount of credit you can use in a specified time period |
| Equal Credit Opportunity Act | A law that makes discrimination in credit applications illegal and pays special attention to women's credit rights |
| Consolidation Loan | A large loan that brings together all a person's debts and usually requires a high interest rate |
| Collection Agent | A person who has the job of trying to get people to pay overdue debts |
| Usury Law | A credit law that sets the maximum rate of interest that can be charged for credit |
| Bankruptcy | A legal process to distribute among creditors the property or money of a person declared incapable of carrying any more debt |
| Truth-In-Lending Disclosure | A statement, required by law to be given to a consumer, that spells out all the costs of borrowing |
| Fair Credit Reporting Act | A law that gives you the right to know what is in your credit file & to challenge the information in it |
| Fair Credit Billing Act | A law that outlines the steps that credit card and charge account customers must follow when errors occur in monthly statements |
| Credit Counselor | A person who has the job of helping customers who are in trouble with cedit |
| Fair Debt Collection Practices Act | A credit law that sets up regulations that must be followed by anyone who collects money owed |
| Federal Trade Commission | The government agency that is responsible for enforcing the laws on credit and helping consumers with credit problems |
| Credit Bureau | a firm that collects and maintains information about a person's paying habits |
| Unsecured Loan | A loan that is NOT backed by collateral |
| Secured Loan | A loan backed by collateral |
| Revolving Charge Account | Allows you to arry a balance from one month to another with interest |
| Regular Charge Account | Paying off the balance of your loan in full every month |
| Grace Period | The time between the billing date and the payment date |
| Finance Charge | The total cost a borrower must pay for the loan |
| Credit Worthiness | A measure of your reliability to repay a loan |
| Collateral | The property pledged to back a loan |
| Character | A measure of your sense of financial responsibility |
| Capital | The value of what you own |
| Capacity | A measure of your sense of financial responsibility |
| Balloon Payment | Equal monthly payments until the very last larger payment |
| Acceleration Clause | The entire amount of the loan is due if you miss a single payment |
| APR | The finance charge calculated as a percentage of the amount borrowed |
| Cosign | a second party will pay off the loan if the primary borrower cannot |
