Credit Vocabulary

Front

The amount of money or something of value that is loaned out on trust with the expectation it will be repaid later

Back

Credit

Front

The entire amount of money a person owes to lenders.

Back

Debt

Front

Type of credit that has fixed payments with a set period of time to repay (loans)

Back

Installment

Front

Type of credit that has no stated payoff time, but has required minimum monthly payments (credit card)

Back

Revolving

Front

something pledged as security for repayment of a loan, to be forfeited in the event of a default

Back

Collateral

Front

your history and financial stability in the past to get a sense of how responsible you have been with credit

Back

Character

Front

The borrower's ability to pay back their loan

Back

Capacity

Front

Personal items of value that can be sold to pay for loan if you can't pay back a loan

Back

Collateral

Front

The maximum dollar amount that can be borrowed

Back

Credit Limit

Front

the interest rate charged on credit cards, IF you carry a balance

Back

Annual Percentage Rate