Failure to pay back loans.

3 C’s of Credit

Something of value that a borrower lets the lender claim if a loan is not repaid.

A credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of numbers ranging from 300 – 850.

The rate of interest that is charged for using credit

Equifax, Transunion, and Experian keep a record of consumer’s credit transactions. These are called. . . .

The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation.

a loan where a borrower gets cash advances based on his paycheck.

the dollar amount you pay to use credit.

A type of open credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card.

A type of closed credit where the loan is repaid with interest in equal periodic payments. Example: car loan, mortgage.

A loan that is secured by collateral, properties or assets that are subject to seizure on default.

taking away property due to failure to repay the debt.

The original sum of money that was lent or invested, on which interest is paid.