1. Basic Credit Vocabulary Terms
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2. Different Types of Credit
Credit card: a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer (usually a bank) to pay them for the amounts so paid plus other agreed charges.
Installment plan: Debt to be paid at regular times over a specified period. Examples of installment debt include most mortgage and auto loans.

3. Different Types of Credit
Layaway: a system of paying a deposit to secure an item for later purchase.
Revolving debt: Debt owed on an account that the borrower can repeatedly use and pay back without having to reapply every time credit is used. Credit cards are the most common type of revolving account.

4. Different Types of Credit
Line of Credit: credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, traditional revolving credit card account, etc. It is effectively a source of funds that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn.

5. Laws Related to Credit
Equal Credit Opportunity Act (ECOA): Federal legislation that prohibits discrimination in credit. The ECOA originally was enacted in 1974 as Title VII of the Consumer Credit Protection Act.

6. Laws Related to Credit
Fair Credit Reporting Act(FCRA): Federal legislation that promotes the accuracy, confidentiality and proper use of information in the files of every "consumer reporting agency". The FCRA was enacted in 1970.

7. Obtaining Credit
Credit score: This term is often used to refer to credit bureau risk scores. It broadly refers to a number generated by a statistical model which is used to objectively evaluate information that pertains to making a credit decision.

8. Obtaining Credit
Credit obligation: An agreement by which a person is legally bound to pay back borrowed money or used credit. Interest: the cost of a loan paid by the borrower.

9. The 2 “sides” of Credit
Borrower: the consumer or business requesting a loan or line of credit.
Lender: the financial institution (bank, store, finance office) making a loan to a consumer or business.