Bus Foundations Chapter 15

a time period during which no finance charges are added to a credit card

• annual percentage rate

• net income

• grace period

• open-end credit

an agreement to be responsible for loan payments if another person fails to make them

• line of credit

• bankruptcy

• collateral

• cosigning

a last resort legal process in which some or all of the assets of a debtor are distributed among creditors because the debtor is unable to pay his or her debts

• creditor

• bankruptcy

• annual percentage rate

• credit rating

the ability to borrow money for goods and services up to a limit set by the company issuing the credit

• cosigning

• collateral

• line of credit

• open end credit

an entity (bank, finance company, credit union, business, or individual) to which money is owed

• creditor

• credit rating

• collateral

• open-end credit

the measure of a person’s ability to make credit payments on time

• credit rating

• grace period

• creditor

• annual percentage rate

the income a person receives

• credit rating

• net income

• collateral

• line of credit

form of security to help guarantee that a creditor will be repaid

• line of credit

• cosigning

• bankruptcy

• collateral

the cost of credit on a yearly basis, expressed as a percentage

• net income

• annual percentage rate

• collateral

• open-end credit

the maximum amount of money a creditor will allow a credit user to borrow

• line of credit

• credit rating

• creditor

• open-end credit