Managing Your Personal Finances CH 7
Terms in this set (54)
The most commonly used method of purchase in the United States.
Early in the history of the United States, credit consisted of a store account with a local retailer, and ____________ was rarely charged.
Today, Americans do not use credit mainly for ________ spending needs.
Although it's not a good idea, it is legal to use one _______________ card to pay another credit card.
When your __________ exceed your expenses, you have the capacity to take on debt.
Payments on a credit account include both __________ and interest.
If there is a ________ with a purchase, credit cardholders can withhold payment until it is resolved.
Carrying a credit card is not more dangerous than carrying ___________.
Having a credit card protects you from the risk of ___________ theft.
Most credit cards are _______________ credit agreements.
If you do not use your credit card within a 12-month period, you still have to pay the ___________ fee.
Money borrowed against your line of credit is called a ____________ advance.
Finance companies take more __________ than banks, so they tend to be less lenient with borrowers who are late making a payment.
Life insurance ____________ that build cash value can be used to borrow money.
The need for credit arose in the United States with the dawn of the ______________ Revolution.
A person who borrows money.
Your financial position is based on your _____________.
The total dollar amount of all interest and fees you pay for the use of credit is called the _________ charge.
_________ billing is a service available to charge customers whereby purchases are not billed until much later than the standard billing time.
The full balance on a __________ card must be paid each month.
The full balance on a __________ card does not have to be paid each month.
If you go over your credit limit or make your payment late, you will likely be charged a(n) ________ fee.
A cell phone companies, doctors and electricity are forms of __________ credit.
A legal business that makes high-interest loans based on the value of personal possessions is called a
The use of someone else's money, borrowed now with the agreement to pay it back later, is called __________.
A person who borrows money from another is a(n) __________.
A(n) __________ is a person or business that loans money to others.
__________ is the value of property you possess after deducting your debts.
Property pledged to assure repayment of a loan is called __________.
With a(n) __________ loan, the goods you purchase with the loan serve as collateral for the money loaned.
With __________ end credit, a borrower can use credit up to a stated limit.
The __________ period is a timeframe within which you may pay your current credit balance in full and incur no finance charges.
A(n) __________ company is an organization that makes high-risk consumer loans.
A(n) __________ law is a state law that sets a maximum interest rate that may be charged for consumer loans.
A _________ of credit is a preestablished amount that can be borrowed on demand with no collateral.
____________ is the cost of credit expressed as a yearly percentage.
A ____________ finance company makes most of its loans to consumers who are buying durable goods (items expected to last many years).
A ____________ finance company makes loans to consumers through authorized representatives such as car dealerships.
The Credit CARD Act of 2009 capped ___________ fees to prevent excessive charges from being passed on to cardholders.
Credit card penalty fees are now capped at $______________ for most customers—$35 if payments are late more than once within six billing cycles.
Buying items on credit may cost more than buying items with __________.
An item purchased on credit and paid for over time costs more because of the ___________ charges.
When you use credit, you tie up ___________ income.
Buying on credit can lead to __________.
___________ end credit is a loan for a specific amount that must be repaid in full, including all finance charges, by a stated due date.
Consumers often use closed-end credit to pay for expensive items, such as _____________, furniture, or major appliances.
The borrower takes out a closed-end loan for a particular amount and then repays it with ___________ payments, or installments, that include principal and interest.
The security used to assure repayment of a loan.
The value of property you possess after deducting your debts.
A person who lends money at an exorbitant or illegal rate of interest.
The Truth in _____________ Act requires creditors to provide consumers with the terms and cost of credit
A(n) ________ card is a standard bank credit card issued in conjunction with some charitable, political, or other nonprofit organization.
A legal business that makes high-interest loans based on the value of personal possessions pledged as collateral.
The amount of money borrowed.
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