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Argylls 8 HLH
Term | Definition |
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Credit | An arrangement to receive cash, goods, services now and pay for them now and pay for them in the future. |
Creditor | An entity that lends money. |
Closed-end credit | Credit as a on e-time loan that you will pay back over a specified period of time in payments of equal amounts. |
line of credit | the maximum amount of money a creditor will allow a credit user borrow. |
What are four kinds of loans? | Inexpensive, medium-priced, expensive, and home equity loans. |
finance charge | the total dollar amount you pay to use credit. |
grace period | a time during which no finance charges will be added to your account. |
What are three kinds of credit cards? | Debit card, cobranding, and smart card. |
APR | Annual Percentage Rate |
net income | the income you receive |
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. |
credit rating | a measure of a person's ability and willingness to make credit payments on time. |
cosigning | loan means that you agree to be responsible for the loan payments if the other person fails to do so. |
bankruptcy | a legal process in which some or all of the assets of the debtor are distributed among the creditors. |
minimum monthly payment | the smallest amount you can pay and remain a borrower in good standing. |
what are the five Cs of credit. | character, capacity, capital, collateral, and conditions. |
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. |
What is an advantage of credit? | Lets you enjoy goods and services now and pay for them later. |
What is a disadvantage of credit? | Credit is a temptation to buy more than you can afford. |