Credit

A LEGAL agreement between two parties in which one party lends money or provides goods or services to another party with the understanding that payment will be made at a later date

• Money

• Credit

• Cash

• Checks

The party to who money is owed

• Creditor

• Debtor

The party receiving the credit

• Creditor

• Debtor

The amount paid by a borrower for the use of credit

• APR

• Collateral

• Interest

• Principal

Property a borrower gives up in case on default

• Collateral

• Interest

• APR

• Principal

The amount of money borrowed (original amount)

• APR

• Interest

• Principal

• Collateral

The annual cost of credit charged by a lender (Your true cost of the credit)

• Interest

• APR

• Collateral

• Interest

Which is NOT a type of credit

• Consumer

• Business

• Trade

• ATM

Credit granted to an individual by a retail business

• Consumer

• Business

Credit granted to a business by a financial institution or another company

• Consumer

• Business