Credit Vocabulary

Front

Is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future?

Back

Credit

Front

Something of value that a borrower lets the lender claim if a loan is not repaid.

Back

Collateral

Front

Is a loan that does not have collateral pledged against it.

Back

Unsecured Loan

Front

Is a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

Back

Loan

Front

Is a loan in which the borrower pledges some asset as collateral.

Back

Secured Loan

Front

The total amount of money owed lenders or creditors.

Back

Debt

Front

There is not a set payoff date for the credit.

Back

Open-end Credit

Front

The annual rate of interest that is charged for using credit

Back

APR

Front

Amount of money borrowed.

Back

Principal

Front

Is the dollar amount it costs to use a credit card? Options: APR, Fixed Rate, Variable Rate, Finance Charge

Back

Finance Charge