8.01-8.05
Credit cards
(Visa, MasterCard, etc.) are perhaps the most used form of open-end credit. Credit cards can be used in a vast number of locations, including most retail stores, online sites, and most businesses.
Smart cards
These 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.
convenience users
Those who pay off their balances in full each month and avoid the finance and interest charges are known as
Closed-end credit
is a one-time loan that you pay back over time in payments of equal amounts.
Open-end credit
is loans made on a revolving basis with the repayment period not set. Open-end credit is also known as revolving credit.
retail cards
which are similar to credit cards, but which can only be used at the business offering the retail card.
bank line of credit.
A bank line of credit generally has installments that you pay over time, and there may be finance charges based on the amount of credit used rather than having interest charged on the amount of available credit.
Five C's of Credit
Character, Capacity, Capital, Collateral, Conditions
secured credit card
With secured cards, you submit money to the financial institution and then you are able to use your credit card up to the amount of money that you deposited.
Stored value cards
are also known as gift cards and prepaid cards. These cards have a prepaid amount of money on the card that is available for use.
Debit cards
are used to electronically subtract money from a savings or checking account to pay for a purchase.