BMP Ch 18
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13 terms
Terms | Definitions |
|---|---|
 credit | the privilege of using someone else's money for a period of time |
| finance charge | the total dollar cost of credit including interest and all other charges |
| down payment | a payment of part of the purchase price that is made as part of a credit agreement |
| installment loan | a loan in which you agree to make monthly payments in specific amounts over a period of time |
| promissory note | a written promise to repay based on a debtor's excellent credit history |
| collateral | property that is used as security, giving the lender the right to sell this property to get back the amount of the loan if it is not repaid |
| cosigner | the party responsible for payment of a note if the borrower does not pay as promised |
| credit rating | a person's reputation for paying bills on time |
| interest | the money you receive for letting others use your money; the money you pay for using someone else's money |
| annual percentage rate | the percentage cost of credit on a yearly basis |
| credit application | a form on which you provide information needed by a lender to make a decision about granting credit |
| credit bureau | a company that gathers information on credit users and sells that information to business offering credit |
| statement of account | a record of the transactions completed during the billing period |
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