2. Borrowing

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  • Created by: J.E.S
  • Created on: 19-10-17 10:01
A loan to finance the purchase of real estate (e.g. a house). A Mortgage is secured on the house, which remains to be the property of the bank until the loan is paid off.
Mortgage
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Cards that may be used repeatedly to buy products and services on credit or to borrow money up to a pre arranged amount limit
Credit card
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Cards that may be used to buy products and services on credit from the shop that issued the card, up to a re arranged limit. Repayment terms are similar to credit cards.
Store card
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A loan given for a personal household (e.g. to buy items such as furniture)
Personal loan
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Instalment plan whereby the loan company owns the item, but it becomes yours when the debt if fully paid off.
Hire purchase
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Borrowing up to an agreed limit on a current account. Overdrafts must be paid back on demand.
Overdraft
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Getting money from a lender that must be repaid in the future (e.g. a mortgage)
Borrowing
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Amount of money borrowed
Loan
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The length of time over which a loan can be repaid
Term of a loan
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The interest rate published on loans to help compare their true costs
Annual percentage rate
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Other cards in this set

Card 2

Front

Cards that may be used repeatedly to buy products and services on credit or to borrow money up to a pre arranged amount limit

Back

Credit card

Card 3

Front

Cards that may be used to buy products and services on credit from the shop that issued the card, up to a re arranged limit. Repayment terms are similar to credit cards.

Back

Preview of the front of card 3

Card 4

Front

A loan given for a personal household (e.g. to buy items such as furniture)

Back

Preview of the front of card 4

Card 5

Front

Instalment plan whereby the loan company owns the item, but it becomes yours when the debt if fully paid off.

Back

Preview of the front of card 5
View more cards

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