credit - When you borrow money and promise to pay it back later., Principal - The original amount of money borrowed, Interest - The cost of borrowing money, usually expressed as a percentage, APR - The yearly interest rate including fees and other costs, Truth In Lending Act - This requires lenders to clearly explain loan terms, rates and costs, Debt - Money that you owe to someone else , Default - Failing to repay a loan or make required payments, Promissory Note - A written promise stating how and when a borrower will repay a loan, Secure loan - A loan backed by property or assets, Collateral - The item used to secure a loan, Credit limit - The maximum amount you are allowed to borrow on a credit account, Grace period - The period after a payment is due when no penalty is charged., Late payment fee - A charge added when a payment is late, Finance charge - The cost of borrowing, including interest and fees, Annual Fee - A charge used by some credit cards for having the account open each year., Over the limit - If you spend more than your credit limit, you will be charged, Cash Advance - When you borrow cash directly from your credit account, Minimum Payment - The smallest amount you must pay each billing cycle, Five C's - Criteria lenders use to evaluate if someone is trustworthy to borrow money, FICO Score - The number that represents a person's credit risk based on their payment history, Bankruptcy - When someone is unable to pay their debs and seeks legal relief, Credit Bureaus - Companies that collect credit information and track your borrowing history, Credit Report - A detailed record of your borrowing, payment history and financial behavior., Wage Garnishment - When money is taken directly out of your paycheck to pay a debt.,

Credit & Borrowing

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