Chapter 22: Borrowing Money and Buying on Credit
Chapter Overview: Ready to Learn?
Credit is an arrangement through which you receive cash, goods, or services now and pay for them in the future. The cost of using someone else’s money is called interest. The two main types of credit are open-end credit and closed-end credit. Charge accounts and credit cards are examples of open-end credit. Installment loans and bank loans are closed-end credit. The government has created laws to protect your credit. The Equal Credit Opportunity Act, the Fair Credit Reporting Act, and the Fair Credit Billing Act are designed to protect both businesses and consumers. As you study this chapter, you will learn more about the laws that protect you and your credit.
Legal Web Links: Need to Know More?
Surf the Internet for legal Web links.
The Web site for the American Consumer Credit Counseling Organization.
Self-Check Quizzes:Test Tomorrow?
Test your knowledge of chapter material with a self-check quiz.
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