Chapter 25: The Basics of Credit

A(n) ________ is based on the value of something you own that is left with a pawnbroker as security against money borrowed.

________ specialize in loans to people who might not be able to get credit elsewhere.

A(n) ________ borrows money or uses credit.

It is used to purchase ________, such as a home.

________ vary from one provider to the next.

________ is an agreement to obtain money, goods, or services now in exchange for a promise to pay in the future.

________ such as banks, savings and loans, and credit unions offer many types of loans.

________ offer short- term loans until payday.

The type of credit used by people for ________ is called consumer credit.

There are three basic types of credit cards: ________, multipurpose, and travel and entertainment.

________ charge a fee for using their money, which is called interest.

________ used by businesses is called commercial credit.

single-purpose, multipurpose, and travel and entertainment