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6.02 Vocabulary

Alternative credit A source of credit that may combine elements of open and closed-end credit and usually have higher interest rates and fees then other forms of credit
Closed-end credit (also known as installment credit) is a loan which you must repay in a specified number of equal monthly payments
Open-end credit (also known as revolving credit) is extended as a line of credit established in advance, so you do not have to apply for credit each time credit is desired
Pawn loan A loan based on the value of personal property
Payday loan A short-term loan that provides immediate cash by securing a borrower's written check or receiving authorization for automatic withdrawal from the borrower's depository institution account
Refund anticipation loan Short-term cash advance secured by a taxpayer's expected refund
Rent-to-own Tangible items such as furniture, electronics or household appliances are leased with the condition that the item will be owned by the renter if the term of rent is completed
Title loan The borrower gives the lender his/her automobile title in exchange for a set amount of cash. The lender holds the title until the loan is repaid. If the loan is not repaid as agreed, the lender keeps title to the item.
Created by: brooke.burgess
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