U6 L2 Credit Basics Flashcards
Increase vocabulary skills through repetition to increase comprehension of curriculum
source of credit that may combine elements of open and closed-end credit and usually have higher interest rates and fees than other forms of credit
alternative credit
loan based on the value of personal property
pawn loan
short-term loan that provides immediate cash by securing a borrower’s written check or receiving authorization for automatic withdrawal from the borrower’s depository institution account
payday loan
short-term cash advance secured by a taxpayer’s expected tax refund
refund anticipation loan
tangible items such as furniture, electronics or household appliances are leased with the condition that the item will be owned by the renter if the term of rent is completed. The cumulative end amount a consumer pays to lease an item is typically much higher than if the consumer bought the item from the onset
rent-to-own
borrower gives the lender his/her automobile title in exchange for a set amount of cash. The lender holds the title until the loan is repaid. If the loan is not repaid as agreed, the lender keeps title to the item.
title loan