The person, bank or company who you are borrowing money from

An installment loan that provides money for a car

An installment loan that provides money for a house

An obligation owed by one party to a second party

An initial payment made when something is bought on credit

An installment loan that provides funds borrowers can use for college tuition, textbooks, or living expenses

They lend customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck.

A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit

A legal process where people who cannot repay debts seek relief from some or all of their debts.

A measure of a person's credit risk. Banks use it to decide whether they should give out loans. Typically between 300-850

The original amount in a bank account OR borrowed for a loan

Money paid regularly for the use of money borrowed

A table with each monthly payment on a loan. It shows how much of the monthly payment goes toward interest and principal.

A table showing the summary of the costs of a credit card.

Used to finance a specific purchase for a specific amount of time. Examples are auto loans, mortgages, and personal loans.

An open line of credit that can be used for any purchases as long as you're under the credit limit. Credit cards are an example.

Debt is tied to a specific asset that can be used as collateral and repossessed if borrower doesn't make payments

Debt is not tied to a specific asset; there is no collateral that can be repossessed if borrower doesn't make payments

Interest rate can change during the duration of the loan

Interest rate stays the same for the life of the loan