Consumer Credit

Created by 500001chinrichs 

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16 terms

Credit

an arrangement to receive cash, goods, or services now and pay for them in the future

Consumer Credit

is the use of credit for personal needs

Creditor

an entity that lends money

Close-end Credit

is credit as a one-time loan that you will pay back over a specified period of time in payments of equal amounts

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

Line of Credit

is the maximum amount of money a creditor will allow a credit user to borrow

Grace Period

a time period during which no finance charges will be added to your account

Finance Charge

is the total dollar amount you pay to use credit

Net Income

is the income you receive. ( take-home pay, allowance, gifts, and interest)

Annual Percentage Rate (APR)

is the cost of credit on a yearly basis, expressed as a percentage

Collateral

is a form of security to help guarantee that hte creditor will be repaid

Simple Interest

is the interest computed only on the principal, the amount that you borrow

Minimum Monthly Payment

is the smallest amount you can pay and remain a borrower in good standing

Credit Rating

is a measure of a person's ability and willingness to make credit payments on time

Cosigning

that you agree to be responsible for the loan payments if the other person fails to make them

Bankruptcy

is 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 his or her debts

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