Module 8 Review

Stored value cards

Also known as gift cards and prepaid cards. These cards have a prepaid amount of money on the card that is available for use.

Credit

An arrangement between you and another party where you receive goods or services now and pay later.

Retail cards

Similar to credit cards, but can only be used at the business offering the retail card.

Capital

The assets that you currently own, such as houses, cars, investments, and so on.

Bank line of credit

This is a prearranged loan amount that you can access by writing specific checks.

Closed-end credit

A one-time loan that you pay back over time in payments of equal amounts.

Collateral

An asset that you are willing to use to back up a loan.

Consumer credit

Credit for personal items (except for homes) that people want or need, such as clothing, vehicles, and so on.

Smart cards

Have a computer chip embedded in the card that can carry a great deal of information, such as driver's license information, medical history, and health care information.

Open-end credit

Loans made on a revolving basis and the repayment period is not set. Also known as revolving credit.

Credit cards

Perhaps the most used form of open-end credit. Credit cards can be used at a vast number of locations, including most retail stores, online sites, and most businesses.

Debit cards

Used to electronically subtract money from a savings or checking account to pay for a purchase.