Personal Finance 7.2
Terms in this set (11)
Bank Credit card account
open-ended credit account with a financial institution that allows the holder to make purchases almost anywhere.
total amount owed on a credit account not including interest
standard bank cards with the logo of a sponsoring organization imprinted on the face of the card
travel and entertainment card
similar to bank credit cards in that they allow holders to make purchases at numerous businesses. However the entire charge must be paid in 30 days.
Cash advance check
a check-equivalent way to take a cash advance on a credit card
a temporarily low initial interest rate to entice borrowers to apply for a credit card
A high APR that is assessed whenever a borrower fails to uphold certain rules of the account, such as making on-time payments or staying within the specified credit limit.
charges levied against cardholders for the privilege of having an open account but that are not included in the advertised APR
charge levied against cardholders per use of the card
Credit life insurance
pays the unpaid balance of a loan to the lender in the event of the borrower's death
Credit disability insurance
repays the outstanding loan balance if the borrower becomes disabled