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Credit Basics

alternative credit source of credit (may combine some open- and closed- end credit); higher interest rates and fees
closed-end (installment) credit loan; must repay by specific terms
open-end (revolving) credit extended line of credit established in advance; (do not have to apply for credit every time it is desired; inspecific in payment terms
pawn loan loan based on one's personal property value
payday loan short-term loan; provides immediate cash by 1)securing a borrower's written check, or 2)receiving authorization for automatic withdrawal from the borrower's bank account
refund anticipation loan short-term cash advance secured by a taxpayer's expected tax refunds
rent-to-own tangible items leased w/ conditions that the item will be owned by the renter if the term of rent is completed
title loan borrower gives the lender his automobile title in exchange for a set amount of cash; when loan is repayed, title is returned
Created by: Tate.cord70