An agreement to provide goods, services, or money for future payments with interest by a specific schedule; the use of someone else’s money for a fee.

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Presentation transcript:

An agreement to provide goods, services, or money for future payments with interest by a specific schedule; the use of someone else’s money for a fee.

Something of value (often a house or a car) pledged by a borrower as security for a loan. If the borrower fails to make payments on the loan, the collateral may be sold; proceeds from the sale may then be used to pay down the unpaid debt.

The process of seeking information about products and services to find the best quality or utility at the best price.

Payments for the use of someone else’s money; usually expressed as an annual rate in terms of a percent of the principal (i.e., the amount owed).

A loan repaid with a fixed number of equal payments.

The percentage rate of interest charged to the borrower or paid to a lender, saver, or investor.

A type of contract between the borrower and the lender explaining the requirements of fulfilling the loan.

A long-term loan to buy real estate including land and the structures on it.

Credit with collateral (i.e, a house or a car) for the lender.

Single-payment loans and loans that permit the borrower to make irregular payments and borrow additional funds without submitting a new credit application; also known as revolving or open-end credit.

Credit without collateral, such as credit cards.

An establishment that collects and distributes credit history information of individuals and businesses.

A record of borrowing and repayments.

An official record of a borrower’s credit history, including information as the amount and type of credit used, outstanding balances, and any delinquencies, bankruptcies, or tax liens.

A measure of credit worthiness based on an analysis of the consumer’s financial history, often computed as a numerical score, using the FICO or other scoring systems to analyze the consumer’s credit.

The most commonly used credit score. The name comes from the Fair Isaac Corporation, which developed the scoring model.