1.
annual percentage rate: cost of credit expressed as a yearly percentage
2.
charge account: credit from a particular company allowing consumers to buy goods and pay for them later
3.
closing costs: fees involved in arranging for a mortgage or transferring ownership of property
4.
collateral: something of value that a borrower lets the lender claim if a loan is not repaid
5.
costs of a car loan: down payment, monthly payment on principal, and interest
6.
credit: receipt of funds to buy goods and services in the present with the promise to pay for them in the future
7.
credit card: a credit device that allows a person to make purchases without paying cash
8.
credit check: investigation of a person's income, current debts, personal life, and past history of borrowing and repaying debts
9.
credit rating: estimation of the risk involved in lending to a person or business
10.
depreciation: decline in value over time
11.
durable goods: manufactured items that have a life span longer than three years
12.
equity: the market value of a property minus the mortgage amount still owed
13.
finance charge: cost of credit expressed monthly in dollars and cents
14.
interest: amount the borrower must pay for the use of someone else's money
15.
lease: long-term agreement describing the terms under which property is rented
16.
liability insurance: insurance that pays for bodily inquiry and propert damage
17.
mortgage: installment debt owned on houses, buildings, or land
18.
new car warranty: protects car owner for all major repairs except tune-ups and damage caused by improper use of the vehicle
19.
points: feed paid to a lender and computed as a percentage of the loan
20.
principal: amount of funds originally borrowed in a loan
21.
registration fee: licensing fee, usually annual. paid to a state for the right to use a car
22.
savings and loan association: depository institution that accepts deposits and lends funds
23.
secured loan: loan that is backed up by collateral
24.
security deposit: funds a renter lets an owner hold in case rent is not paid or an apartment is damaged
25.
unsecured loan: loan guaranteed only by a promise to repay it