BUSN 108 Chapter Notes -Finance Charge, Interest, Equal Credit Opportunity Act
Document Summary
Your credit matters because if affects your ability to get a loan, a job, housing, insurance, and more. It is important to understand what credit is and how to protect it. Credit: an arrangement to receive cash, goods, or services now and pay for them in the future. Consumer credit: the use of credit for personal needs (except a home mortgage) Consumer credit is based on trust in people"s ability and willingness to pay bills when due. It works because people by and large are honest and responsible. Closed-end credit: one-time loans that the borrower pays back in a specified period of time and in payments of equal amounts. The three most common types of closed-end credit are installment sales credit, installment cash credit, and single lump-sum credit. Installment sales credit is a loan that allows you to receive merchandise, usually high-priced items such as large appliances or furniture.
