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Argylls 8 credit- ME

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Term
Definition
Credit   an arrangement to receive cash, goods, and services now and pay for them in the future  
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Consumer Credit   the use of credit for personal needs; also an indicator of consumer spending and demand  
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Creditor   an entity that lends money  
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Closed-end Credit   credit as a one-time loan that you will pay back over a specified period of time in payments of equal amounts  
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Open-end Credit   credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services  
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Line of Credit   maximum amount of money a creditor will allow a credit user to borrow  
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Loan   borrowed money with an agreement to repay it with interest within a certain amount of time  
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Grace Period   a time period during which no finance charges will be added to your account  
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Finance Charge   the total dollar amount you pay to use credit  
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Net Income   the income you receive; take-home pay, allowance, gifts, and interest  
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Annual Percentage Rate (APR)   the cost of credit on a yearly basis, expressed as a percentage  
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Collateral   form of security to help guarantee that the creditor will be repaid  
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Simple Interest   interest computed only on the principal, the amount that you borrow  
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Minimum Monthly Payment   the smallest amount you can pay and remain a borrower in good standing  
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Credit Rating   credit rating measure of a person's ability and willingness to make credit payments on time  
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Cosigning   an agreement to be responsible for the loan payments if the other person fails to make them  
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Bankruptcy   legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor was unable to pay his or her debts  
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Five C's of Credit   character, capacity, capital, collateral, and conditions  
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Credit Sources (5)   commercial banks, consumer finance companies, credit unions, life insurance companies, federal savings banks(savings and loan associations)  
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How much is the maximum amount of money you have to pay if someone uses your card illegally with the Consumer Credit Protection Act?   $50  
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Created by: maddievans11
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