Chapter 24 Fundamentals of Credit Vocabulary

1
Chapter 24 Fundamentals of Credit--- Vocabulary

• The definition of the word will show up on
  screen.
• Look thru your flash cards (if the teacher wants
  you to) to find the word that corresponds.
• Hold up your flash card once youve found the
  word!

• Please do not say the word out loud until
  instructed!

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Vocabulary

• A customers honesty and willingness to pay a debt
  when it is due. If you have a reputation for
  paying bills on time you will be considered a
  good credit risk. How youve paid bills in the
  past predicts how youll pay bills in the future.

• Character

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Vocabulary

• Credit offered at the time of sale. Offered by
  most retail and wholesale businesses. Involves
  charge accounts and credit cards by consumers.

• Sales Credit

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Vocabulary

• A customers ability to pay a debt when it is due.
  The lender or seller considers whether your
  income is enough to permit you to pay your bills.
  If it isnt, you may not be granted credit at
  that particular place.

• Capacity

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Vocabulary

• A persons reputation for paying debts on time and
  being dependable. Important to have when wanting
  to make a major purchase.

• Credit Rating

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Vocabulary

• One who buys on credit or receives a loan.

• Debtor

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Vocabulary

• Borrowing money to be used later for some special
  purpose. Loans are available from financial
  institutions and involve written contracts.
  Usually repaid in specified amounts, called
  installments until loan is repaid.

• Loan Credit

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Vocabulary

• The privilege of using someone else's money for a
  period of time. The transaction creates a
  creditor and a debtor.

• Credit

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Vocabulary

• A business receives goods from a wholesaler and
  pays for them later at a specified date. Terms
  often stated 2/10 n 30

• Trade Credit

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Vocabulary

• Businesses or individuals from whom you have
  received credit in the past and /or who can help
  verify your credit record. Based on what they
  say, credit may or may not be extended to you.

• Credit References

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Vocabulary

• The value of the borrowers possessions. Includes
  the property you own and money you have.

• Capital

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Vocabulary

• The creditors belief that the debtor will honor
  the promise to pay later for goods and services
  that have already been received and used.

• Trust

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Vocabulary

• One who sells on credit or makes a loan.

• Creditor