There are several types of credit: - Regular charge accounts require payment in full within 20-30 days or a finance charge is applied. - Installment accounts have scheduled, equal payments over time including interest as defined in a written contract. They are used to purchase appliances and furniture. - Revolving accounts allow variable monthly payments, as long as a minimum payment is made. The unpaid balance carries over each month. - Installment loans provide a specific amount with scheduled, monthly payments of a set amount over time including interest. They help businesses and individuals purchase big items.

1. Types of Credit
Assignment 13.2

2. Regular Charge Account
-Borrower
promises to
pay in full
within 20-30
days
-If not paid in
time, there is a
finance charge
Promises a
company to
pay regular
charge
account.

3. Installment Account
Borrowers agree
to a schedule of
payments of equal
dollar amounts,
including interest.
Borrowers
typically asked to
sign a written
contract
Installment
Account used to
purchase
appliances and
furniture

4. Revolving Accounts
-Borrowers may
choose to pay in full
each month or spread
payments over time
-A minimum
payment (a
percentage of unpaid
balance) must be
made each month
-Unpaid balance will
be carried over to the
next month
Those that have a
different payment
each month spending
on your current
balance are known as
revolving account

5. Installment Loans
Installment loans
provide a specific
amount of money
with promise of
repayment with
interest according
to a schedule of
monthly
payments in a set
amount.
Installment loans
are great for
businesses and
individuals who
lack the cash to
purchase a big
ticket.

6. single-Payment Loans
loans that require
collateral. Single-
payment loans
provide a specific
amount of money
with the promise
of repayment
with interest in a
single payment at
a specified time.
Single payment
loans are to repay
worth interest in
a single payment
of a specific
amount of money
such as collage.

7. Credit-Card/Check Credit
Loans
low borrowers
to use their
credit cards to
obtain money
or write a
check
connected to
the card
accoun
Credit- card
check
borrowers
repay with
interest.