Chapter 25: The Basics of Credit

Pawnshop loan

A(n) ________ is based on the value of something you own that is left with a pawnbroker as security against money borrowed.

Consumer finance companies

________ specialize in loans to people who might not be able to get credit elsewhere.

Debtor

A(n) ________ borrows money or uses credit.

real estate

It is used to purchase ________, such as a home.

Interest rates

________ vary from one provider to the next.

Credit

________ is an agreement to obtain money, goods, or services now in exchange for a promise to pay in the future.

Financial institutions

________ such as banks, savings and loans, and credit unions offer many types of loans.

Payday advance services

________ offer short- term loans until payday.

personal reasons

The type of credit used by people for ________ is called consumer credit.

single purpose

There are three basic types of credit cards: ________, multipurpose, and travel and entertainment.

Creditors

________ charge a fee for using their money, which is called interest.

Credit

________ used by businesses is called commercial credit.

There are three basic types of credit cards

single-purpose, multipurpose, and travel and entertainment