8.What drawbacks do they have?

However, if you take a cash advance on your credit card, you are charged interest from the moment you make a withdrawal until the money is paid back

9.What is difference between credit and debit cards?

Debit cards allow you to shop in stores that accept these cards, as well as pay for things online or over the phone without paying cash. Debit cards also let you withdraw cash from an Automatic Teller Machine*.

10.Why do some people prefer to use debit cards? •Debit cards allow you to shop in stores that accept these cards, as well as pay for things online or over the phone without paying cash. Debit cards also let you withdraw cash from an Automatic Teller Machine*.

11.What is a charge account?

Charge account: an arrangement between a supplier and a customer, by which the customer is allowed to pay at the end of an agreed period for all goods he has bought during that period.

12.Is there any charge for the use of a charge account? •Charge accounts allow you to charge purchases to your accounts for payment at a later date. These accounts are usually offered by retailers in several forms such as the 30-day account which requires payment within 30 days, the installment plan (equal payments including interest are made for a specified number of months) and all-purpose accounts (payments made in full or over a period of time). 13.What benefits does this account provide?

Charge accounts allow you to charge purchases to your accounts for payment at a later date

14.What is a consumer credit?

Consumer credit: money lent by financial institutions to enable individuals to buy consumer goods or services with regular installment payments.

Consumer credit is short-term, intermediate-term, and long-term consumer loans used to finance the purchase of commodities or services for personal consumption. The loans may be supplied by lenders in the form of loan credit or by sellers in the form of sales credit. Consumer loans refer to installment loans. They include automobile loans, home repair loans, mortgage loans, educational loans, loans for other consumer goods, and credit card purchases.

15.What does consumer credit provide?

Consumer credit is short-term, intermediate-term, and long-term consumer loans used to finance the purchase of commodities or services for personal consumption

16.What is the difference between loan credit and sales credit?

The difference between a loan credit and a sales credit is that a loan credit enables to borrow money to finance a purchase while a sales credit enables consumers to buy goods and services and to pay for them later.

17.What is a consumer loan?

Consumer loan: the lending of money to the public by banks and other financial institutions for the purpose of buying consumer goods.

18. What are the best known types of consumer loans? Consumer loans refer to installment loans. They include automobile loans, home repair loans, mortgage loans, educational loans, loans for other consumer goods, and credit card purchases.

19.What is a principal?

Before buying something on credit you should bear in view that credit requires the necessary monthly installments. You pay for the credit costs through interest charged on the principal, the original amount borrowed. What the lender charges depends on many factors, including the cost of money, the risk involved and other costs of doing business. 20. Why may credit costs vary in size?

What the lender charges depends on many factors, including the cost of money, the risk involved and other costs of doing business.