Spending Unit Vocabulary

Someone who receives something with a promise to return it or its equivalent

• Credit history

• Credit limit

• Borrower

• Tax lien

A loan of a certain amount of money that a borrower must repay in a specified number of equal payments. Also known as installment credit

• Credit

• Closed-end credit

• Lender

• Open-end credit

Businesses hired by lenders to pursue payments on debts that borrowers have not paid back according to the terms of the credit contract

• Co-signer

• Credit

• Collection agency

• Lender

A person who is equally responsible for paying back debt under the credit terms

• Credit score

• Credit

• Co-signer

• Lender

Refers to goods, services, and/or money received in exchange for a promise to pay back a definite sum of money at a future date

• Tax lien

• Credit score

• Lender

• Credit

A record of the borrower's past loans and credit-related transactions

• Credit

• Credit score

• Credit history

• Lender

The maximum dollar amount that can be borrowed

• Credit

• Credit history

• Credit limit

• Credit score

A record of a person's use of credit

• Lender

• Foreclosures

• Tax lien

• Credit report

Agencies that create credit reports based on the information they receive from lenders regarding a borrower's account history with that lender. Sometimes called credit bureaus

• Lender

• Credit reporting agencies

• Open-end credit

• Tax lien

A numerical summary of your credit history that indicates your credit worthiness (likelihood of repaying a loan as agreed)

• Lender

• Foreclosures

• Credit score

• Open-end credit