What is credit?
What is credit?
Is an agreement between two parties in which one party lends money or provides goods
what are the most common types of credit
open-end credit
what does "APR" mean
annual percentage rate
annual cost of credit charged by a lender
true or false do business accept credit cards
True
true or false is character important when it comes to credit
true
what are credit benefits
sourcing of funding for emergency or unexpected expenses.
closed-end credit and open credit are different because
closed-end credit is loan with interest
open-end-credit is an agreement that allows you to borrower
credit is based on primarily 3 factors
Interest rate charged
amount of credit used
length of repayment period
consumers credit is sometimes issued by
Proprietary credit cards
should bank statements be requested or you can get them anytime?
requested
debtor-creditor relationship
is a legal relationship is based om good faith that both parties will uphold their end of the agreement
what does an amortization table show
amount of interest and principal applied with each payment
what is on formula used when calculating cost of a loan
Simple interest
true or false
is debt good or bad
bad
3 C of credit
Character
capacity
capital
what are typical terms for associating with using credit?
creditor
what is open-end credit is also referred as
Line of credit or revolving line of credit
who view the purchases of a business
An Accountant
what happens when customers don't pay there credit to business
the business fails and they go in debt
how money national credit reporting agencies in the nation
3
Equifax Experian TransUnion LLC
what is the main purpose of credit?
credit is to serve as a medium of exchange that allows business, and government agencies to buy goods and services now a pay them back later.
obtaining a loan for a building is called?
a secured loan
what happens when you over use credit
your credit score drops and lenders wont give you money because they dont trust you
is the cost of credit a variable of expense or revenue
expense
What determines your FICO score?
Length of credit history
payment history
Amount owed