Ch 6 Voc
Terms
undefined, object
copy deck
- net income
- is the income you receive
- close-end credit
- you receive a one-time loan that you will pay back over a specific period of time and in equal payments.
- finance charge
- the total dollar amount you pay to use credit.
- open-end credit
- you borrow money for a variety of goods and services.
- credit
- an arrangement to receive cash, goods, or services now and pay for them in the future.
- interest
- is a periodic charge in exchange for the use of credit.
- principal
- the amount you borrow
- simple interest
- is the interest computed only on principal
- bankruptcy
- is a legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts
- minimum monthly payment
- the smallest amount you can pay and remain a borrower in good standing
- line of credit
- is the maximim amount of money the creditor has made available to you.
- indebtedness
- the condition of being deeply in debt
- consumer credit
- the use or credit for personal needs, dates back to colonial times.
- debt-collectors
- business that collect debts for creditors
- co-signing
- a loan means that you agree to be responsible for loan payments if the other party fails to make them.
- annual percentage rate (APR)
- shows how much credit costs you on a yearly basis, experesed as perecentage.
- creditor
- an entity(a bank, finance company , credit union, business, or individual,) to which money is owned.--agrees to advance an individual the money, goods, and services.
- credit rating
- is a measure og aperson's aboloty and willingness to make credit payments on time
- grace period
- a time period during which no finance charges will be added to your account.