-
credit
receipt of money either directly or indirectly to buy goods and services in the present with the promise to pay for them in the future
-
principal
amount of money originally borrowed in a loan
-
interest
amount of money the borrower must pay for the use of someone else's money
-
installment debt
type of loan repaid withe equal payments, or installments , over a specific period of time
-
durable goods
manufactured items that have a life span longer than three years
-
mortgage
installment debt owned on houses, buildings, or land
-
commercial bank
bank whose main functions are to accept deposits, lend money, and transfer funds among banks, individuals, and businesses
-
savings and loan association (S&L)
depository institution that accepts deposits and lents money
-
savings bank
depository institution originally set up to serve small savers overlooked my commercial banks
-
credit union
- depository institution owned and operated by its members to provide savings accounts and
- low-interest loans only to its members
-
finance company
company that takes over contracts for installment debts from stores and adds a fee for collecting the debt; a consumer finance company makes loans directly to consumers at high rates of interest
-
charge account
credit extended to a consumer allowing the consumer to buy goods or services from a particular company and to pay for them later
-
credit card
credit device that allows a person to make purchases at many kind of stores, restaurants, and other businesses without paying cash
-
finance charge
cost of credit expressed monthly in dollars and cents
-
annual percentage rate (APR)
cost of credit expressed as a yearly percentage
-
credit bureau
private business that investigates a person to determine the risk involved in lending money to that person
-
credit check
investigation of a person's income, current debts, personal life, and past history of borrowing and repaying debts
-
credit rating
rating of the risk involved in lending money to a specific person or business
-
collateral
something of value that a borrower lets the lender claim if a loan is not repaid
-
secured loan
loan that is backed up by collateral
-
unsecured loan
loan guaranteed only by a promise to repay it
-
usury law
law restricting the amount of interest that can be charged for credit
-
bankruptcy
the inability to pay debts based on the income recieved
|
|
