An arrangement to receive cash, goods, or services now and pay for them in the future.
The use of credit for personal needs.
a person to whom money is owed
one time loan that one will pay over an amount of time in equal amounts of money
credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services
a line of credit
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
is the total dollar amount you pay to use credit.
Also called profit. Calculated as the Revenue - Expenses
annual percentage rate
the total cost of credit expressed as a yearly percentage
a security pledged for the repayment of a loan
interest paid on the principal alone. This interest is NOT included in the next period's principal.
minimum monthly payment
the smallest amount you can pay and remain a borrower in good standing
an estimate, based on previous dealings, of a person's or an organization's ability to fulfill their financial commitments
agreeing to be responsible for another person's loan payments if that person fails to make them
a state of being in so much debt that you are legally declared unable to pay in full the people and companies you owe. When you legally declare yourself bankrupt in some states, you must sell off all your possessions and pay off your debts as best you can.
five C's of credit
limit the use of credit to no more tan 20% of your yearly take home pay, with payments of no more than 10% of monthly take home pay
Does not include home morgages
reconciling a checkbook
calculating the deposite that has not shown in the bank statement, and calculating the balance in so that one knows how much money one has.
Based on the information in your credit report, is calculated weighing the amount of debt you carry relative to your available credit, the timeliness of your payments, the type of debt you carry, and a great many other factors to assign you a credit score between 300 and 850.
home equity loans
using home as collateral in purchasing major consumer goods. they are popular because current federal tax laws allow deductions of 100 percent of the interest on home equity loans from the sum of one's total income in determining tax liability and home equity loans can be obtained at rates lower than the prevailing rates for other types of consumer loans. the risk is that one must pay back the loan in a timely manner or risk losing the home.