Unit 3 Vocabulary

The value of property you possess after deducting your debts.

• Debtor
• Capital
• Character
• Credit

A loan for a specific amount that must be repaid in full, including all finance charges, by a stated due date.

• Finance Charge
• Creditor
• Character
• Closed-End Credit

Property pledged to assure repayment of a loan.

• Grace Period
• Creditor
• Collateral
• Credit

The use of someone else's money, borrowed now with the agreement to pay it back later.

• Capacity
• Billing Statement
• Credit Score
• Credit

A person or business that loans money to others.

• Capital
• Creditor
• Creditworthy
• Line of Credit

A person who borrows money from others.

• Debtor
• Billing Statement
• Creditworthy
• Minimum Payment

The total dollar amount of all interest and fees you pay for the use of credit.

• Finance Charge
• Billing Statement
• Creditor
• Line of Credit

A timeframe within which you may pay your current balance in full and incur no finance charges.

• Grace Period
• Capital
• Collateral
• Minimum Payment

A preestablished amount that can be borrowed on demand with no collateral.

• Capacity
• Capital
• Collateral
• Line of Credit

The least amount you may pay each month under your credit agreement.

• Capacity
• Creditor
• Collateral
• Minimum Payment