Financial Vocab. Ch 3-1,2

A person’s property or what is owned.

• debtor

• credit

• asset

• FICO score

A numerical value that indicates how well a user of credit meets financial obligations; these records are used by creditors when they decide to issue credit.

• crediting

• credit rating

• credit

• credit line

Organization or person who extends credit to debtors.

• credits

• credit reporting agency

• deffered payment plan

• creditor

Organizations that compile records on users of credit as to how well they repay their debts.

• credit calendar

• credit card

• credit reporting agency

• creditor

Organization or person who uses credit.

• credit reporting agency

• default

• debtor

• debit card

Describes the situation when a borrower fails to make payments according to the schedule set up when the loan originated.

• defer

• default

• dependent variable

• debtor

When something is bought that is not paid for at the time of purchase.

• credit

• credit rating

• down payment

• creditor

Requires the borrower to make periodic payments but no interest is charged if the payments are made on time. With deferred payment plans, borrowers pay the same price for an item as if they paid for it in full at the time of purchase, and they take possession of the item immediately.

• defer

• debt reduction plan

• credit card

• deferred payment plan

The upfront money applied to a purchase that is made using a loan (credit).

• down payment

• credit

• downtick

• collateral

A person’s ability to earn money now and in the future.

• employment

• credit rating

• earning power

• layaway plan