Dagmaris Chapter 16 Terms
Terms
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- Is property you possess that is worth more than your debts.
- Capital
- Is property pledged to assure repayment of a loan.
- Collateral
- is the total dollar amount of all interest and fees you pay for the use of credit
- Finance Charge
- Which is a pre-established amount that can be borrowed on demand with no collateral
- Line of credit
- is a service available to charge customers whereby purchases are not billed to the customer until later
- Deferred Billing
- is an agreement to lend the borrower an amount up to stated limit and allow borrowing up to that limit again, whenever the balence falls below the limit.
- Open Ended Credit
- is the cost of credit expressed as a yearly percentage.
- Annual Percentage Rate
- is a loan for specific amount that must be repaid, in full, including all finance charges by a stated due date.
- Closed End Credit
- which is 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
- is a legal business that makes high interest loans based on the value of personal posessions pledged as collateral
- pawnbroker