1. Chapter 16 Credit in America
MYPF CHAPTER 16
13-SEPT-2001
Chapter 16 Credit in America
What Is Credit?
Money borrowed to buy something now, with the agreement to pay for it later.
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2. Describe how credit developed in America.
Lesson 16.1 What Is Credit?
Describe how credit developed in America.
Define basic credit vocabulary.
Discuss the advantages and disadvantages of using credit.
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3. Development of Credit Read the information in book Page 387-388.
In the past
Credit today
Lets discuss!
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4. The Vocabulary of Credit
Borrower or debtor
Creditor
Capital
Collateral
Principal
Finance charge
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5. Advantages and Disadvantages of Consumer Credit
Purchasing power
Emergency funds
Convenience
Deferred billing
Proof of purchase
Safety
Disadvantages
Higher costs
Finance charges
Tie up income
Overspending
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6. Lesson 16.2 Types and Sources of Credit
List and describe the kinds of credit available.
Describe and compare sources of credit.
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7. Kinds of Credit Open-ended credit Closed-end credit Service credit
Open 30-day accounts
Revolving credit accounts
Credit card terms
Closed-end credit
Service credit
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8. Credit Card Terms Annual percentage rate (APR)
Free period (grace period)
Annual fees
Transaction fees and late fees
Method of calculating the finance charge
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9. Sources of Credit Retail stores Credit card companies
Banks and credit unions
Finance companies
Pawnbrokers
Private lenders
Other sources of consumer credit
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10. What is good credit
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