| Term | Definition |
|---|
| closed end credit | installment loan that you pay back over a specified period of time (ex.: mortgage loan) |
| open end credit | approved credit for a specified amount of money that you can use for goods and services (ex: credit cards) |
| inexpensive loan | ex: borrowing from family member who will not charge you interest |
| credit | an arrangement to receive cash and/or goods and pay for them later |
| secured loan | guaranteed to be repaid through collateral (ex: car or home) |
| non secured loans | usually credit cards b/c you don't put up any collateral |
| American Express | actually NOT a credit card ... review text p162 :) |
| Equifax | a credit bureau |
| finance charge | the total amount you pay to use credit |
| cosignor | a person who signs w/a borrower & agrees to pay the loan if the borrower can not |
| Chapter 7 bankruptcy | requires you to sell most of your assets |
| Chapter 13 bankrupty | a plan that allows you to keep most assets but distributes your earnings back to your creditors |
| home equity loan | a loan on a home (interest paid is tax deductible ) |
| long-term loans | usually have higher interest rates |
| capital | assets (things you own) should exceed your liabilities (debts you owe) |
| credit bureau | agency that collects info on how promptly people/businesses pay their bills |
| credit files | credit bureaus should make sure the info in a person's file is accurate (when solving a disputed charge) |
| Consumer Credit Counseling Service | supervises debt repayment plans |
| APR | the cost of credit on a yearly basis (annual percentage rate) |
| credit rating | complete record of a person's borrowing |
| creditor | an entity (person, business, bank) to which money is owed |
| debt collector | a business that collects debts for creditors |
| grace period | a time period during which no finance charges are added to a credit card account |
| bankruptcy | legal process in which some or all assets are distributed among creditors b/c debtor is unable to repay |
Combine with other sets
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