�Main types of credit

-Charge Accounts

-Credit Cards

-Installment Credit

-Consumer Loans

Charge account is a contract between creditors and debtors.
¡Regular Charge Accounts

÷Require that you pay for purchases in full within a certain period of time.  Example:  A charge account with an electrician who re-wired a house

¡Revolving Charge Accounts

÷Allows you to borrow or charge up to a certain amount of money (credit limit) and pay back a part or the entire balance each month.  Example: A charge account with Duke Power utility company

¡Budget Charge Accounts

÷Allows you to pay for costly items in equal payments spread out over a period of time (6 months same as cash). Example: Home equity credit line

Bonds
�Corporate Bonds

¡Usually used to finance buildings and equipment.

�Municipal Bonds

¡State and local governments use these to finance projects.

�Savings Bonds

-Sold by federal government.