People can pay back loans {installment loan}| in fixed or changing monthly amounts {conditional sale} {installment sale}.
revolving
Installment loans can require people to repay loan monthly in amount above a minimum amount. Lender charges interest on unpaid total {revolving charge account}. Annual percentage rate for revolving charge accounts varies from 12% to 20%.
types
Store accounts, bank credit cards, gasoline company credit cards, and nationwide credit-agency accounts, like Diner's Club, Carte Blanche, and American Express, are revolving charge accounts.
finance charge
Getting loans can require fees. Customers {debtor} can agree to pay companies or banks {creditor} a percentage of finance charges each month.
auto loan
Buyer possesses and uses vehicle, but creditor retains ownership until buyer makes all required payments. Buyer cannot resell car without creditor's consent. If no payment causes loan default, creditor can take back car {repossession}.
interest charge
Truth in Lending Law requires exact credit cost and interest charge to be in bills, advertising, and sales. Credit cost is finance charge and annual percentage rate. Loan documents list cash price, subtract trade-in allowance and/or down payment, and state finance charge, annual percentage rate, and total cost, including deferred payment charges.
Practical Affairs>Financial Affairs>Loan>Type
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Date Modified: 2022.0224