Chapter 4

3. a legal claim against (or right to own) an asset until the debt (loan) is repaid
5. the increase in value of a home over time; the difference between the amount owed and what the home could be sold for
6. the loss of value of an asset over time
8. the original amount of a loan; the total amount borrowed before interest
9. the amount of time, in months, that you’ll be making payments
10. Bureau a company that collects credit rating information and makes it available to creditors
13. Equity when the value of an asset falls below what is owed on it
14. Asset an asset that increases in value over time
16. money owed to another person or company

1. Score a statistical number used to represent a consumer‘s creditworthiness
2. Asset an asset that loses value over time, such as a car that’s worth less every year
4. failure to repay a loan on time
7. Credit credit that automatically renews whenever a payment is made to reduce the debt
10. 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
11. the additional cost a lender charges for borrowing their money
12. Credit a loan for a fixed amount of money that‘s paid back in monthly installments
15. Lending a lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash