Credit Basics

One that loans money to another

How likely a potential borrower is to pay back debt

Debt not tied to a specific asset

Finances a specific purchase for a specific amount of time

Open line of credit that can be used for any purchases as long as you're under the credit limit

Debt tied to a specific asset that can be used as collateral and repossessed if payments not made

Interest rate that can change during the duration of a loan

One who receives money

Interest rate remains constant during duration of a loan

The amount being borrowed