Chapter 6 Credit
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An arrangement to receive cash, goods, or services now and pay for them in the future.
The use of credit for personal needs.
An entity that lends money.
Credit as a one-time loan that you will pay back over a specified period of time in the payments of equal amounts.
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.
A time period during which no finance charges will be added to your account.
The total dollar amount you pay to use credit.
The income you receive.
Annual Percentage Rate
The cost of credit in a yearly basis, expressed as a percentage.
A form of security to help guarantee that the creditor will be repaid.
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 is a good standing.
A measure of a person's ability and willingness to make credit payments on time.
When you agree to be responsible for the loan payments if the other person fails to make them.
A legal process in which some or all d the assets of a debtor are distributed among creditors because the debtor is unable to pay his or her debts.