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b
c
d
e
100
the privilege of using someone else’s money for a period of time.
What is credit
100
requires the buyer to make full payment within a stated period – usually 25 to 30 days.
What is regular account
100
anyone who buys on credit or receives a loan.
What is debtor
100
this requires that a customer make payments of a fixed amount over several months.
What is Budget Accounts
100
the one who sells on credit or makes a loan.
What is creditor
200
most popular form; charge at any time but only part of debt must be paid each month.
What is Revolving Accounts
200
total dollar cost of credit including interest and all other charges.
What is Finance Charge
200
a payment of part of the purchase price.
What is Down Payment
200
contract issued by the seller that requires periodic payments at specified times.
What is Installment Sales Credit
200
one in which you agree to make monthly payments in specific amounts over a period of time.
What is Installment Loan
300
you don’t pay until the end of the loan period, 60 or 90 days.
What is Single-Payment Loan
300
written promise to repay based on debtor’s excellent credit history.
What is Promissory Note
300
property that is used as security
What is Collateral
300
when you use collateral and you give the lender the right to sell this property to get back the amount of the loan if you do not repay it.
What is Secured Loan
300
the responsible party for payment of the note if you do not pay as promised.
What is Cosigner
400
person’s reputation for paying bills on time.
Credit Rating
400
the cost of using someone else’s money.
What is Interest
400
amount of the loan.
What is Principal
400
percent of interest charged or earned.
What is Rate
400
length of time for which interest will be charged, usually years or parts of a year.
What is Time
500
simple interest formula
What is I=PxRxT
500
(APR) a disclosure required by law that states the percentage cost of credit on a yearly basis.
What is Annual Percentage Rate
500
refers to your honesty and willingness to pay a debt when it is due.
What is Character
500
refers to a person’s ability to pay a debt when it is due.
What is Capacity
500
the value of the borrower’s possessions; includes the money and property you own.
What is Capital
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