Accounting Ch. 5 Flashcards
Credit History
The Record of your prior credit purchases and payments.
Default
You fail to pay a debt or other obligation.
Cosigner
Someone who agrees to pay your debt if you fail to pay.
Capacity
Your Ability to pay debts.
Credit Application Form
A form that you will fill out in order to be considered for a loan.
Capital
The assets you have at your disposal.
Credit Bureau
An organization that keeps track of credit that is extended to you and the payments you make.
Credit Report
Shows credit cards, car loans, mortgages, or any other type of credit that has been extended to you.
Credit Score
A number that indicates how well you handle credit.
Credit Card
A thin plastic card that contains info, such as a person’s name and account number.
Unsecured Loans
You can borrow money or purchase goods or services just by signing your name.
Collateral
Property accepted as security for a debt.
Annual Percentage Rate (APR)
The interest rate that you will be charged.
Revolving Credit
You must pay only part of the charges, but you will be charged interest on the remaining amount.
Cash Advance
A loan against the available credit on you card.
