Credit
amount of money a borrower must pay for the use of someone else’s money
interest
Which type of financial institution controls the largest amount of funds and offers the widest range of services?
Commercial Bank
receipt of money to buy goods or services in the present with the promise to pay for them in the future
credit
sets maximum interest rates consumers can be charged
usury law
private business that investigates a person to determine the risk involved in lending money to that person
credit bureau
What is the most common type of debt in the United States?
installment debt
A financial institution that is owned and operated by members to provide savings accounts and low-interest loans is a
Credit Union
something of value that a borrower lets the lender claim if a loan is not repaid
collateral
those who provide credit cannot deny someone solely on the basis of race, religion, national origin, gender, marital status, or age.
Equal Credit Opportunity Act
cost of credit expressed as a yearly percentage
annual percentage rate
What do you have to pay when you borrow funds?
principal plus interest
credit that allows a consumer to buy goods and services from a particular company and pay later
charge account
loan guaranteed only by a promise to repay it
unsecured loan
the state of legally having been declared unable to pay off debts owed with available income
bankruptcy
type of loan that is repaid in equal payments over a fixed period of time
installment debt
installment debt owed on houses, buildings, or land
Mortgage
financial institution that takes over contracts for installment debts from retailers and receives a fee for collecting the debt
finance company
main factor lenders consider in determining a person’s creditworthiness? Hint "risk involved in lending to a person"
credit rating
loan backed up by collateral
secured loan
What is the amount of time you have to pay off a loan?
installment period
washer and dryer, refrigerator, dishwasher
durable goods
cost of credit expressed monthly in dollars and cents
finance charge
investigation of a person's income, current debts, personal life, and past history or borrowing and repaying debt
credit check
Maximum Interest Rate for Arkansas
17%
After individuals declare personal bankruptcy,
the bankruptcy proceedings stay on their credit record for 10 years.