Ch 4 Credit & Debt

3. Money owed to another person or company.
6. Score A statistical number used to represent a consumer‘s creditworthiness.
7. The additional cost a lender charges for borrowing their money.
10. Failure to repay a loan on time.
11. Asset An asset that increases in value over time.
13. Credit that automatically renews whenever a payment is made to reduce the debt.
16. Equity When the value of an asset falls below what is owed on it.
17. Lending A lender who uses deceptive, unfair, or fraudulent practices on borrowers who are desperate for cash.

1. The original amount of a loan; the total amount borrowed before interest.
2. Bureau A company that collects credit rating information and makes it available to creditors.
3. Asset An asset that loses value over time, such as a car that's worth less every year.
4. The loss of value of an asset over time
5. Credit A loan for a fixed amount of money that‘s paid back in monthly installments.
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. A legal claim (or right to own) against an asset until the debt (loan) is repaid.
12. The amount of time, in months, that you'll be making payments.
14. The additional cost a lender charges for borrowing their money.
15. 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.