Chapter 16- JF
Terms
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- Capital
- property you possess that is worth more than your debts
- collateral
- property pledges to assure repayment of a loan
- Finance charge
- the total sollar amount of all interest and fees you pay for the use of credit
- Line of credit
- a pre-established amount that can be borrowed on demand with no collateral
- Deffered billing
- a service available to charge customers whereby purchases are not billed to the sutomer until later
- Open-ended credit
- an agreemnt to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again, whenever the balance falls below the limit
- Annual Percentage Rate (APR)
- the cost of credit expressed as a yealry percentage
- Service Credit
- an agreement to have a service performed now and pay for it later
- Loan sharks
- unlicensed lenders who charge illegaly high interest rates.
- Usury Laws
- set maximum interest rates that may be charged for loans
- Pawnbroker
- a legal business that makes high-interest loans based on the value of personal possessions pledged as collateral