Ch.16 Terms
Terms
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- Money Borrowed to nuy something now, with the agreement to pay for it later.
- Credit
- Property you possess [such as bank accounts, investmnents,and other assets
- Capital
- Property pledged to assure repayment of a loan.
- Collateral
- The totaldollar amount of all interest and fees you pay for the use of credit.
- Finanace Charge
- Pre-established amount that can be borrowed on demand with no collateral.
- Line Of Credit
- A service avalaible to charge customers whereby purchases are not billed to the customer until later.
- Deffered Billing
- An agreement to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again, whenever the ballance falls below the limit.
- Open-ended credit
- The cost of credit expressed as a yearly percentage.
- Annual Percentage Rate (APR)
- A loan for a specific amount that must be repaid in full, including all finanace charges, by a stated due date.
- Closed-end credit.
- An agreement to have a service performed now and pay for it later.
- Service credit
- Unlicensed lenders who charge illegally high interest rates.
- Loan Sharks
- Set maximum interest rates that may be charged for loans.
- Usury laws
- A legal business that make high-interest loans based on the value of personal possesions pledged as collateral
- Pawnbroker