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Chapter 10

TermDefinition
Bankruptcy Legal process for selling most of a consumer's property to help satisfy debits that he or she cannot pay in exchange for the debt obligations
Collateral Property pledged to back a loan
Cosign a Loan A contractual agreement to pay a debt if the borrower does not pay it
Credit Ability to borrow money in return for a promises of future repayment
Credit Bureau Company that collects information about your credit history and sells it to lenders
Credit Rating A measure of your creditworthiness, often computed as numerical score, using the FICO scoring system to analyze your credit history
finance Charge The total amount a borrower must pay for a loan
Installment Loan A loan to be repaid in a certain number of payments with a certain interest rate
Secured Loan A loan backed by something of value pledged to ensure payment
Unsecured Loan A loan not backed by any collateral
Created by: Ortizj41