Ch 4 Vocab

2. the amount of time, in months, that you’ll be making payments
4. when the value of an asset falls below what is owed on it
7. something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender
8. the increase in value of a home over time; the difference between the amount owed and what the home could be sold for
9. an asset that loses value over time, such as a car that’s worth less every year
10. an asset that increases in value over time
14. the loss of value of an asset over time
15. money owed to another person or company
16. a lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash

1. a company that collects credit rating information and makes it available to creditors
3. credit that automatically renews whenever a payment is made to reduce the debt
5. the additional cost a lender charges for borrowing their money
6. a loan for a fixed amount of money that‘s paid back in monthly installments
11. the original amount of a loan; the total amount borrowed before fees and interest
12. a statistical number used to represent a consumer‘s creditworthiness
13. a legal claim (or right to own) against an asset until the debt (loan) is repaid
17. failure to repay a loan on time