Question | Answer |
Credit | Is an arrangement to receive cash, goods, or services now and pay for them in the future. |
Creditor | A financial individual |
Open-end Credit | Is credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services. |
Closed-end Credit | A one-time loan that you will pay back over a period of time. |
Grace Period | A time period during 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. |
Collateral | IS a form of security to help guarantee that the creditor will be repaid. |
Annual Percentage Rate (APR) | The cost of credit on a yearly basis expressed as a percentages |
Simple Interest | Is the interest computed only on the principal |
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 | Means 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 their dept. |
CCCS - Consumer Credit Counseling Service | Nonprofit organization. |
Impostors | Personal information to commit fraud. |
Promptly | On time payer. |
Name 3 types of credit cards | Debit, Credit, Smart Cards. |
Line of Credit | The maximum amount of money a creditor will allow a credit user will borrow. |
Name 3 types of loans | Home Equity Loans, Expensive Loans,Inexpensive Loans. |