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17 Cards in this Set
- Front
- Back
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supplying of money, goods, or services at present in exchange for the promise of future payment |
credit |
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business or organization that extends the credit |
creditor |
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principal |
original amount borrowed, plus $724 interest paid for the use of the creditor's money |
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secured credit |
the borrower offers something of value as assurance that the loan will be repaid |
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collateral |
the property that is pledged to guarantee repayment |
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one-time extension of credit for a specific amount and time period |
closed-end credit |
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monthly payment of all of all or part of the account balance |
open-end credit |
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set portion of the loan amount that the borrower must pay at regularly scheduled intervals |
installment |
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the total cost of using credit, including interest and any fees |
finance charge |
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If you take out a loan and receive cash, you're using ___ credit. |
cash |
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If you buy something now and wish to pay for it later, you're using ___ credit. |
sales |
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If a lender has a ___, it means that the property can be taken by the lender if the loan is not paid. |
security interest |
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___ credit is generally less difficult for consumers to obtain than ___ credit. |
secured, unsecured |
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Open-end credit is sometimes referred to ___ |
a line of credit |
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A ___ specifies the dates on which installment payments are due and the amount of each installment |
payment schedule |
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What are the advantages of credit? |
temporary expansion of income, convenience, financial responsibility |
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What are the costs of credit? |
interest and fees, increased cost of merchandise, opportunity cost, security concerns, impulse buying, overspending, reclaimed merchandise |
