| A | B |
|---|
| grace period | The free period; allows you to avoid a finance charge if you pay in full before the due date |
| creditor | One who lends money or the use of goods and services for payment at a later date |
| credit | Paying at a future date for the present use of goods and services or money |
| line of credit | A pre-established amount that can be borrowed on demand |
| collateral | A loan on which the goods purchased with the loan serve as ____; a type of secured loan |
| open-ended credit | credit whereby you can add purchases up to a set credit limit |
| closed-end | A loan for a specific amount that must be repaid in full, including finance charges, by a stated due date |
| cash advance | money borowed against the credit card limit |
| sales finance company | a manufacturer-related company, makes loans through authroized representatives |
| loan sharks | are unlicensed lenders who carge illegal rates |
| deferred billing | a service to customers; allow syou to charge now and not be billed for several months |
| finance charge | interest you pay for the use of credit |
| service | almost everyone used _____ credit, which is having work performed and paying for it later |
| retail | store that offers goods and services directly to consumers and include department stores, drugstores, and clothing stores |
| finance companies | small loan companies; charge higher interest rates and take more risk |
| usury | some state set maximum interest rates |
| pawnbroker | legal business where loans are made based ont he value of merchandise used as collateral |
