Standard 7 Flashcards
Something of value often a house or car pledged by the borrower as security for a loan if the borrower fails to make payments on the loan, the collateral maybe sold; proceeds from the sale may then be paid down the unpaid debt
Collateral
An agreement To provide goods or services, or money in exchange for future payments with interest by a specific date or according to a specific schedule using someone else’s money for a fee
Credit
The process of seeking information about products and services to find the best quality or utility at the best price
Comparison shopping
Payment for the use of someone else’s money usually expressed as an annual rate and terms of a percent of the principal
Interest
Loan repaid with a fixed number of equal payment
Installment credit
Percentage rate of interest charged to the borrower or paid to lender, saver, or investor
Interest rate
Type of contract between the borrower and the lender explaining the requirements for fulfilling the loan
Loan agreement
A long-term loan to buy real estate including land in the structures on it
Mortgage
Credit with collateral for the lender
Secured credit
Single Payment loans and loans that permit the borrower to make irregular payments and tomorrow additional funds without submitting a new credit application also known as revolving open ended credit
Non-Installment credit
Credit without collateral i.e. Credit cards
Unsecured credit
An establishment that collects and distributes credit history information to individuals and businesses
Credit bureau
A record of borrowing and repayments
Credit History
An official record of a borrowers credit history including such information is the amount and type of credit used, outstanding balances, and any delinquencies bankruptcies, or tax liens
Credit report
A measure of credit worthiness based on an analysis of the Consumers Financial history, often competed as a numerical scores, using the F I CO or other scoring systems to analyze the consumers credit
Credit score/rating
