S: Personal Finance
BC: By : Alicia Miller
FC: Credit Vocabulary!
1: Annual Percentage Rate - interest rate for a whole year, rather than just a monthly feel rate, as applied on a loan, mortgage loan, and credit card.
2: Bankruptcy - inability of an individual to secure any more money from a bank; device that informs banks that an thing owed if any more money is lent.
3: Closed-End Credit - credit contracts that specify the time period over which the loan or sales contract will be repaid.
4: Collateral - something pledged as security for repayment of a loan, to be forfeited in the event of a default.
5: Trick or Treat! | Contract - secure specified rights or undertake specified obligations in formal and legally binding agreement.
6: Cosigner - a signer in addition to the principal signer; to verify the authority of the principal signature.
7: Credit - ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
8: Credit Card - small plastic card issued by a bank allowing the holder to purchase goods or services on credit.
9: Creditor - person or company to whom money is owed.
10: Credit Report - record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.
11: Creditworthy - considered suitable to receive credit, especially because of being reliable in paying money back in the past.
12: Foreclosure - process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.
13: Open-end Credit - consumer credit line that can be used up to a certain limit or paid down at any time.
14: Pawnshop - pawnbroker's shop, especially one where unredeemed items are sold to the public.
15: Principal - the original amount of a debt on which interest is calculated.
16: Rent-to-own - informal term for a type of retail storefront businesses which rents assets or items.
17: Repossession - generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction.
18: Secured Loan - loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan.
19: Title Loan - high-cost, short-term loan that uses the borrower's automobile as collateral.