Introduction To Business--Chapter 25

Front 1

Cost of Credit

Back 1

Most important factor is the risk a creditor takes

Front 2

Entertainment Cards

Back 2

Include Dinner Clubs, Carte Blanche, and America Express

Front 3

Mortgage

Back 3

A 15-30 year installment loan usually for a house

Front 4

Short-term loan

Back 4

This type of loan is usually for one year or less

Front 5

Commercial Credit

Back 5

Used by firms to buy goods, pay salaries, buy property

Front 6

Single-Purpose Card

Back 6

Card that can only be used at the business issuing it

Front 7

Installment Loans

Back 7

Loans repaid in regular payments over a period of time

Front 8

Credit Rating

Back 8

Includes things like your income, current debt, and debt history which measure your ability to repay a loan

Front 9

Interest

Back 9

The fee creditors charge for using their money

Front 10

Creditor

Back 10

Lends money or provides credit

Front 11

Consumer Finance Co.

Back 11

Have higher finance charges than some places since they loan money to people who cannot get credit elsewhere

Front 12

Consumer Credit

Back 12

Type of credit used for people for personal reasons

Front 13

Credit Union Loan

Back 13

Offered to people in certain field--like teachers

Front 14

Debtor

Back 14

The one who borrows money or uses credit

Front 15

Charge Accounts

Back 15

Short-term/medium-term credit offered by stores/dealers

Front 16

Pawnshop

Back 16

Loan provided in exchange for an item

Front 17

Collateral

Back 17

This is required for a mortgage loan

Front 18

Payday Loan

Back 18

Not permitted in some states, it is made without a credit check

Front 19

Revolving Credit

Back 19

Charge account that allows you to charge "up to" a certain amount and pay back a part of what you owe each month