credit

credit

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

creditor

party extending the credit

debtor

receiving the credit, owes money to the creditor

consumer credit

credit granted to individual consumers by a retail business

business credit

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

trade credit

a business granting a line of credit to another business for a short period of time to purchase its goods and services

closed-end credit

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

secured credit

credit loans that require collateral

installment loan

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

principal

the amount of money borrowed

finance charge

the total amount paid by a borrower to a lender for the use of credit

open-end credit

an agreement that allows the borrower to use a specific amount of credit over a period of time

unsecured credit

credit granted based on a signed credit agreement

annual percentage rate (APR)

the annual cost of credit charged by a lender