Sources and types of credit

3. 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
7. an asset that loses value over time, such as a car that’s worth less every year
9. a loan for a fixed amount of money that‘s paid back in monthly installments
10. money you borrow for personal use, paid back in regular installments.
13. a loan backed by something you own (like a car or house); if you don’t pay, the lender can take it.
14. a loan that doesn’t require anything as backup; based only on your promise to pay.
15. the increase in value of a home over time; the difference between the amount owed and what the home could be sold for

1. money borrowed to pay for school or college, usually with lower interest rates.
2. credit that automatically renews whenever a payment is made to reduce the debt
4. let you borrow money up to a limit; you pay it back later, but spending too much makes it harder to pay off.
5. a lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash
6. failure to repay a loan on time
8. a legal claim against (or right to own) an asset until the debt (loan) is repaid
11. an asset that increases in value over time
12. a loan that uses the value of your home as collateral.