Data

Copy and paste the text below. It is read-only. Select All

credit an arrangement to receive cash, goods, and services now and pay for them in the future consumer credit the use of credit for personal needs interest a periodic charge in exchange for the use of credit closed-end credit a one-time loan used for a specific purpose with a definite amount of money that will be payed back over a specific period time and in equal-sized payments (ex. mortgage) open-end credit borrowing a limited amount of money for a variety of goods and services line of credit the maximum amount of money a creditor makes available with open-end credit grace period a time period during which no finance charges will be added to an account finance charge the total dollar amount paid to use credit net income the total income received annual percentage rate (APR) how much credit costs on a yearly basis collateral a form of loan security to help guarantee that the creditor will be repaid simple interest the interest compounded only on the principal principal the amount of money borrowed 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 co-signing an agreement to be responsible for loan payments if the other party involved fails to make them debt collectors businesses that collect debts for creditors indebtedness the condition of being deeply in debt 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 his/her debts