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6.02

TermDefinition
Alternative Credit a source of credit that may combine elements of open and closed-end credit and usually have higher interest rates and fees than 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 goal loan that provides immediate cash by securing a borrowers written check or receiving authorization for automatic withdrawal from the borrowers bank account
refund anticipation loan short term cash advance secured by a taxpayers expected tax refund
rent-to-own tangible items leased with condition that the item will be owned by the renter if the rent is completed. the cummulative end amount a consumer pays to leases an item is higher than the onset
title loan the borrower gives the lender the 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 the title to the item.
Created by: BaileyBaucom