Vocab
A firm that collects information about the credit-worthiness of consumers
Credit bureau
The supplying of money, goods, or services at present in exchange for the promise of future payment
Credit
A person with a strong established credit history who signs the credit application along with the borrower
Cosigner
A business or organization that extends credit
Creditor
Credit backed by a pledge of property
Secured credit
A numerical rating, based on credit report information, that represents a person's level of creditworthiness
Credit score
Credit that can be used repeatedly
A one-time extension of credit for a specific amount and period of time
Closed-end credit
The original amount borrowed
Principal
A record of an individual's transactions and payment patterns
Credit report
The annual rate of interest charged for using credit
APR
A period of time during which the balance may be paid in full to avoid finance charges
Grace period
The maximum amount of credit that the creditor will extend to the borrower
Credit limit
Property that is pledged to guarantee repayment
Collateral
A pattern of past behavior in regard to repaying debt
Credit history
A set portion of the loan amount that the borrower must pay at regularly scheduled intervals
Installment
The cost of using credit, including interest and fees
Finance charge
An evaluation of a consumer's credit history
Credit rating