Credit
Money borrowed to buy spmething now, with the agreement to pay for it later
Service
An agreemetn to have a servie performed now and pay for it later
Usury
Laws setting mazimum interest rates that may be charged for loans
Pawnbroker
A legal business that makes high-interest loans based on the value of personal possesions pledged as collateral
Line of Credit
A pre-established amount that cana be borowed on demand with no collateral
Differed Billing
A servie to credit customers whereby purchases are not billed for several months
Loan sharks
Unlicensed lenders who charge illegally high interest rates
Open-ended
An agreement to lend the borrower an amount up to a stated limit and to allow borrowing up to that limit again, whenever the balance falls below the limit
Closed-end
A loan for a specific amount that must be repaid, in full, including all finance charges, by a stated due date
Capital
Property owned that is worth more that the owner's debt
Collateral
Property pledged to assure repayment of a loan
Finance charge
Total dollar amount of all interest and fees you pay for the use of credit
APR
The cost of credit expressed as a yearly percentage