Credit Vocabulary

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.

• Loan

• Debt

• Credit

• Collateral

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

• Loan

• Debt

• Credit

• Collateral

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

• Closed-end Credit

• Secured Loan

• Open-end Credit

• Unsecured Loan

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

• Loan

• Debt

• Credit

• Collateral

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

• Closed-end Credit

• Secured Loan

• Open-end Credit

• Unsecured Loan

The total amount of money owed lenders or creditors.

• Loan

• Debt

• Credit

• Collateral

There is not a set payoff date for the credit.

• Closed-end Credit

• Secured Loan

• Open-end Credit

• Unsecured Loan

The annual rate of interest that is charged for using credit

• APR

• Fixed Rate

• Variable Rate

• Finance Charge

Amount of money borrowed.

• Revolving Credit

• Principal

• Installment Credit

• Term

Is the dollar amount it costs to use a credit card.

• APR

• Fixed Rate

• Variable Rate

• Finance Charge