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Ch. 7 Chg Accts & CC

Charge Accounts & Credit Cards

TermDefinition
ACCOUNT STATEMENT LISTS ALL OF THE ITEMS YOU PURCHASED AND OTHER TRANSACTIONS
FINANCE CHARGE INTEREST THAT THE COMPANY CHARGES TO A CREDIT ACCOUNT FOR NOT PAYING THE TOTAL AMOUNT OWED BY THE DUE DATE
UNPAID-BALANCE METHOD COMPUTES THE FINANCE CHARGE BASED ON THE PORTION OF THE PREVIOUS BALANCE YOU HAVE NOT PAID
AVERAGE-DAILY-BALANCE METHOD COMPUTES THE FINANCE CHARGE BY ADDING ANY NEW PURCHASE TO THE BALANCE AT THE END OF EACH DAY, NEW PURCHASES ARE INCLUDED
CHARGE ACCOUNT AN EXISTING LINE OF CREDIT AT THE BUSINESS THAT ISSUED IT
CREDIT CARD A CARD THAT AUTHORIZES PURCHASES ON CREDIT
Created by: dsteffey