Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
Credit
|
the privilege of using someone else's money for a period of time
|
|
|
Debtor
|
anyone who buys on credit or recieves a loan
|
|
|
Creditor
|
The one who sells on credit or makes a loan
|
|
|
3 types of credit
|
trade, loan, sales
|
|
|
3 C's
|
Character-honesty and willingness to pay a debt when it is due
Capacity-your ability to pay a debt when it is due Capital-the value of a borrower's possessions |
|
|
Trust
|
the creditor believes that the debtor will honor the promise to pay later for goods and services that have been recieved and used
|
|
|
Credit References
|
businesses or individuals from whom you have recieved credit in the past and/or who can help the business decide whether loan or salescredit should be extended to you
|
|
|
Benefits of Credit
|
-convenience
-Immediate possession -Savings -Credit Rating -Useful in an Emergency |
|
|
Credit Rating
|
it is useful during an emergency when you must borrow money or you want to make a major purchase
|
|
|
Precautions for use of credit
|
-overbuying
-careless buying -higher prices -overuse of credit |
|
|
regular account
|
the seller or provider expects payment in full within a specified period of time--usually 25 to 30 days after billing date
|
|
|
budget account
|
requires that payment of a certain fixed amount be made over several months
|
