FINLIT-Ch8 Vocab

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.

• credit
• creditor
• debtor
• closed-end credit
• open-end credit

Party extending credit.

• credit
• creditor
• debtor
• open-end credit
• closed-end credit

Party receiving credit.

• credit
• debtor
• creditor
• closed-end credit
• open-end credit

Credit granted to individual consumers by a retail business.

• consumer credit
• principal
• down payment
• closed-end credit
• installment loan

Legally binding agreement between a borrower and a creditor.

• credit
• principal
• contract
• closed-end credit
• installment loan

Statement in a contract that allows the creditor to require full and immediate payment of the entire balance if a payment is missed or the individual fails to abide by the terms of the contract.

• credit
• principal
• acceleration clause
• closed-end credit
• installment loan

Loan for a specific amount that must be repaid with interest by a specified date or according to a specified schedule.

• credit
• principal
• down payment
• closed-end credit
• installment loan

Loan for a specific amount of money that is repaid with interest in regular installments.

• credit
• principal
• down payment
• closed-end credit
• installment loan

Portion of the purchase price paid up front.

• consumer credit
• collateral
• principal
• down payment
• closed-end credit

Amount of money borrowed.

• consumer credit
• collateral
• principal
• line of credit
• revolving credit account