click below
click below
Normal Size Small Size show me how
Argylls 8 klc
| Term | Definition |
|---|---|
| credit | when you borrow money or charge an item to a credit card |
| consumer credit | the use of credit for personal needs |
| creditor | an entity that lends money |
| closed-end credit | credit as a one-time loan that you will pay back over a specified period of time in payments of equal amounts |
| open-end credit | credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services |
| line of credit | the maximum amount of money a creditor will allow a credit user to borrow |
| grace period | a time period during which no finance charges will be added to your account |
| finance charge | the total dollar amount you pay to use credit |
| net income | the income you receive (take-home pay, allowance, gifts, and interest) |
| annual percentage rate (APR) | the cost of credit on a yearly basis, expressed as a percentage |
| collateral | a form of security to help guarantee that the creditor will be repaid |
| simple interest | the interest computed only on the principal, the amount that you borrow |
| minimum monthly payment | the smallest amount you can pay and remain a borrower in good standing |
| credit rating | a measure of a person's ability and willingness to make credit payments on time |
| cosigning | a loan means that you agree to be responsible for the loan payments if the other person fails to make them |
| bankruptcy | a legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts |
| finance | give or get money for |
| title | a document showing ownership |
| portion | part of the total cost of an item that is required at the time of purchase |
| plegded | items you promised to give up if you couldn't pay the loan |
| imposters | people who deceive others by assuming different identities, use your name, Social Security number, credit card number, or any other personal information for their own purposes |
| confidential | private |