VOCAB
VOCAB 2
CREDIT FUNDAMENTALS
100
Credit is the privilege of using someone else's money for a period of time
What is credit
100
property that is used as security
What is collateral
100
regular, budget, and revolving
What are the three types of charge accounts
200
a finance charge is the total dollar cost of credit including interest and all other changes
What is finance charge
200
a persons reputation for paying bills on time
What is credit rating
200
multipurpose cards
What is the most common credit cards issued today
300
payment of part of the purchase price
What is down payment
300
the cost of using someone else's money
What is interest I
300
convenience - immediate possession - saving - credit rating - useful of emergencies
What are some benefits of credit
400
a installment loan is one in which you agree to make monthly payments in specific amounts over a period of time
What is installment loan
400
a form on which you provide information needed by a lender to make a decision about granting credit
What is credit application
400
overbuying - careless buying - higher prices - overuse of credit
What are some concerns of credit
500
is a written promise to repay based on a debtors excellent credit history
What is a promissory note
500
legal process of reducing or eliminating an amount owed
What is bankruptcy
500
no
are bank card and retail store cards the same
M
e
n
u