POB 5.01 Ch. 18 Terms (Part 1)

Most popular form of sales account.

Requires a customer to make fixed payments over several months.

Credit from a written contract granting a certain amount of money.

Paying money to pay off a loan over a period of time.

Property used as security for a debt.

Where you agree to make monthly payments in specific amounts over a period of time.

Over buying, higher prices, careless buying, and overuse of credit.

When a company receives goods from a supplier and pays for them later.

Written promise to repay based on debtors credit history.

Convenience, savings, immediate possession, credit rating, and useful for emergencies.

A debtors reputation for paying bills on time.

The privilege of using someone else's money for a period of time.

Maximum amount that can be owed at one time.

Specific company card issued and affiliated with bank card companies.

Where you do not pay anything until the end of the loan.

Requires the buyer to make full payment within a stated period.

Not given a spending limit, expected to pay back full balance monthly. (ex. American Express)

Shows the name of the store. Can only be used in a particular store or chain.

The total amount of credit including interest and all other charges

To take back an item.

Card that you put money onto to spend. Multipurpose. (ex. Visa)

An initial payment, part of the purchase price.

Use of charge acccounts by consumers.

Another person responsible for payment of a debt.