Chapter 16

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 posses that is worth more than your debts (such as bank accounts, investments, and other assets

Front 3

Collateral

Back 3

is property ledged 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

whic 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 custumer until 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

Back 8

is the cost of credit expressed a yearly percentage

Front 9

Close-End Credit

Back 9

is a loan for a specific amount that must be repaid, i full, including, all finance charge, by a stated due date

Front 10

Service Credit

Back 10

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