Ch. 16 Credit In America

Front 1

Credit

Back 1

Is money borrowed to buy something now, with the agreement to pay for it later.

Front 2

Capital

Back 2

Is property you possess (such as bank accounts, investments, and other assets) that is worth more than your debts.

Front 3

Collateral

Back 3

Is property pledged to assure repayment of a loan.

Front 4

Finance Charge

Back 4

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

Front 5

Line of Credit

Back 5

Which is a pre-established amount that can be borrowed on demand with no collateral.

Front 6

Deferred Billing

Back 6

Is a service available to charge customers whereby purchases are not billed to the customer untill later.

Front 7

Open-ended Credit

Back 7

Is an agreement to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again, whenever the balance falls below the limit.

Front 8

Annual Percentage Rate (APR)

Back 8

Is the cost of credit expressed as a yearly percentage.

Front 9

Closed-end Credit

Back 9

Is a loan for a specific amount that must be repaid.

Front 10

Service Credit

Back 10

Which is an agreement to have a service performed now and pay for it later.

Front 11

Loan Sharks

Back 11

Unlicensed lenders who charge illegally high interest rates.

Front 12

Usury Laws

Back 12

Set maximum interest rates that may be charged for loans.

Front 13

Pawnbroker

Back 13

Is a legal business that makes high-interest loans based on the value of personal possessions pledged as collateral.