Wise Credit

Credit Card

_____ is a type of Revolving credit.

uncollateralized loan

A personal loan without assets to cover the loan amount.

Credit

An arrangement to receive cash, goods, or services now and pay for them in the future.

disposing of a credit card

Cut up the card, put parts in different garbage bags, and instruct the credit card company in writing or by phone to close the account

Garnishment

Occurs when a creditor obtains a court order to take part of the employee's earnings in order to pay back a debt.

collateralized loan.

When a person brings an item to a pawnshop to obtain cash, the transaction is considered

Mortgage loan "house loan"

_______ is an example of Closed-end credit.

Closed-end credit

_________is a type of credit that should be repaid in full amount by the end of the term, by a specified date.

Revolving

a line of credit that may be used over and over again up to a certain borrowing limit.

Installment loan

a loan repaid with interest in equal payments. "Car payment

Federal Housing Administration (FHA) loan

insures lenders who make mortgage loans that are riskier than regular bank loans because

Collateral

tangible asset that is used to secure a loan. In the case of a mortgage, the actual house or apartment serves as the collateral for that loan.

bankruptcy

will appear on the person's credit report for 10 years