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Credit An arrangement to receive cash goods or services now and pay for them in the future.
Consumer credit The use of credit for personal needs.
Creditor An entity that lends money..
Closed end credit A one time loan you will pay back over a certain amount of time using the same amount of money each time as a payment.
Open end credit 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 where 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.
Annual percentage rate. Apr The cost of credit on a yearly basis.
Collateral A form of security to help guarantee that the creditor will be repaid.
Simple interest The interest only computed on the principal, the amount you borrow.
Minimum monthly payment The smallest amount you can pay and remain in good standing.
Credit rating The measure of someone's ability and willingness to pay on time.
Cosigning An agreement that if the person fails to make a payment on the loan that you will be responsible for it.
Bankruptcy A legal process where some or all of the assets are distributed among the creditors because the person is unable to pay the bills.
Finance Give or get money for.
Title A document showing ownership.
Portion Part of the total cost of the item.
Pledged What you promised as collateral.
Created by: Cjcoppes