PF 6.02: Credit Basics

A source of credit that may combine elements of open and closed‐end credit

• Credit
• Alternative Credit
• Credit Limit
• Borrowed Credit

A loan based on the value of personal property

• Pawn Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

A short‐term loan that provides immediate cash by securing a borrower’s written check

• Pawn Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

Short‐term cash advance secured by a taxpayer’s expected tax refund

• Pawn Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

Tangible items are leased with the condition that the item will be owned by the renter if the term of rent is completed. 

• Pawn Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

The borrower gives the lender his/her automobile title in exchange for a set amount of cash. 

• Title Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

Immediate cash by securing a borrower’s written check 

• Title Loan
• Payday Loan
• Refund Anticipation
• Rent to Own 

A loan based on the value of personal property

• Title Loan
• Pawn Loan
• Refund Anticipation
• Rent to Own 

Cash advance secured by a taxpayer’s expected tax refund

• Title Loan
• Pawn Loan
• Refund Anticipation
• Rent to Own 

Tangible items such as furniture, electronics or household appliances are leased and will be owned by the renter if the term of rent is completed. 

• Title Loan
• Pawn Loan
• Refund Anticipation
• Rent to Own