Week 3 Discussion 3 FP101

Week 3 Discussion 3 FP101 - type of purchase. It has to be...

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There are three main ways to pay for an item, if you want to buy something. You could use current cash flow, take money from savings, or borrow the money and repay it later. A lot of people who want to borrow money for their purchases use some type of consumer credit. If you decide to use consumer credit to pay for your items, there are two main types of credit available. The two main types of credit are closed-end credit and open-end credit. Closed-end credit is a credit that a lender provides for a certain
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Unformatted text preview: type of purchase. It has to be paid back, including interest, in either a one-time payment or according to an installment agreement. This agreement states that you will make equal periodic payments that end at a certain time. Open-end credit is not generally used for a particular purchase, and the period of the payment is not specified in advance. You will be preapproved, by a lender, for a line of credit, and be able to use this credit until you have reached your credit limit....
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This note was uploaded on 03/17/2012 for the course ALL all taught by Professor All during the Spring '10 term at University of Phoenix.

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