Chapter 4 Vocabulary

an asset that increases in value over time​​​​​​​

• Credit Score

• Appreciating Asset

• Depreciating Asset

• Depreciation

something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender

• Asset

• Default

• Collateral

• Lien

the additional cost a lender charges for borrowing their money​​​​​​​

• Interest

• Lien

• Equity

• Principal

a company that collects credit rating information and makes it available to creditors

• Credit Score

• Credit Bureau

• Predatory Lender

• Principal

 a statistical number used to represent a consumer‘s creditworthiness

• Debt

• Principal

• Credit Score

• Equity

money owed to another person or company

failure to repay a loan on time

an asset that loses value over time, such as a car that’s worth less every year​​​​​​​

• Appreciating Asset

• Depreciation

• Depreciating Asset

• Debt

the increase in value of a home over time; the difference between the amount owed and what the home could be sold for​​​​​​​

the loss of value of an asset over time

• Depreciation

• Equity

• Appreciating Asset

• Debt