Studied by 4 people
Grace period
A(n) ________ is an amount of time allowed to repay a debt without having to pay interest charges.
Principal
The ________ is the amount of borrowed money that is still owed and on which interest is based.
main applicant
A cosigner is someone who agrees to be responsible for a debt if the ________ does not repay it.
total cost
A down payment is a portion of the ________ that is paid when a product or service is purchased.
Mortgage
Similarly, a(n) ________ is a loan agreement secured by property.
Credit
________ can have a major impact on a consumers life.
Consumers
________ with low credit ratings are usually given higher interest rates and more restrictions.
Capacity
________ is the applicants ability to repay the loan.
Credit card companies
________ can obtain a court order to take all or part of a debtors paycheck if he or she stops making payments.
Cash advance
A(n) ________ is a loan given in cash by a credit card company in anticipation of the borrowers being able to repay.
collateral
If the loan is backed by ________, it is called a secured loan.
finance charge
The ________ is the total amount it costs the borrower to have the lender finance the loan.
Annual percentage rate
The ________ determines the cost of credit on a yearly basis.
Credit card companies
________ charge different fees for different services.
Note 
Flashcard (32)