| A | B |
|---|
| closed-end credit | a loan where the entire amount is loaned at the beginning and all repayment and interest must be repaid by a specific date |
| collateral | something of value (often a house/car) pledged by a borrower as security for a loan |
| installment plan | a credit system where payments are made on goods and upon final payment, the goods are delivered |
| layaway | a system where payments are made at specified times and when all payments are made, the customer gets the goods |
| open-end credit/line of credit | a loan where a total amount is set and the borrower can use any or the entire loan, repaying it over time |
| rent-to-own | arrangement whereby consumers rent something and after a specific time and payments, they become owners of the item(s) |
| revolving credit | credit system whereby borrower can make periodic purchases and payments |
| secured loan | credit with collateral for the lender |
| unsecured loan | debt without collateral; credit card debt for example |
