chapter six vocab
Terms
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- grace period
- a time period during which no financial charges will be added to your account
- credit
- an arrangment to recieve cash, goods, or services
- finance charge
- is the total dollar amount you pay to use credit
- closed-end credit
- you recive a one-t ime loan that you will pay back over a specified period of time and in payments of equal amounts
- annual percentage rate
- shows how much credit costs you on a yearly basis, expressed as a percentage
- simple interest
- the interest computed only on the principal
- net income
- is the income you recive
- creiditor
- an entity (a bank, finance company, credit union, busniess, or individual) ti which money, goods, or services
- indebtedness
- the condition of being deeply in debt
- line of credit
- is the maximum amount of money the creditor has made available to you
- interest
- is a peroidic charge in exchange for the use of credit
- credit rating
- a measure of a person's ability and willingness to make credit payments on time
- open - ended credit
- your borrow money for a varity of goods and services
- bank-ruptcy
- 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/her debts
- debt collectors
- business that collects 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
- minimum monthly payment
- the smallest amount you can pay and remain a borrower in standing
- consumer credit
- the use of credit for personal needs, dates back to colonial times
- collateral
- a form of security to help guarantee that the creditor will be repaid
- principal
- the amount that you borrow