Chapter 11 Flashcards
An arrangement in which you receive cash, goods, or services now and pay in the future.
Credit
Is a fee creditors charge for lending money or extending credit.
Interest
The party who sells the goods on credit or lends the money.
Creditor
The party who buys the goods on credit or who buys the money
Debtor
Credit that can be increased by the debtor by continuing to purchase goods and services on credit, up to a certain limit.
Open-end credit
Credit given for a specific amount of money, which cannot be increased by making additional purchases.
Closed-End Credit
The true interest rate of the loan.
APR
The property that is offered as a security interest.
Collateral
The cost of the loan in dollars and cents.
Finance Charge
A creditor’s right to use collateral to recover debt.
Security Interest
