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Credit Cards & Crdit
CFM
| Term | Definition |
|---|---|
| Annual Fee | It is a yearly fee that you pay for the ability to use that card |
| Annual Percentage Rate (APR) | The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan |
| Balance Transfers | Typically used by consumers who want to move their debt to a credit card with a lower interest rate, fewer penalties or other benefits, such as reward points or travel miles |
| Bankruptcy | a condition of financial failure caused by not having the money that you need to pay your debts |
| Cash Advances | Is a service provided by most credit card and charge card issuers |
| Co-signer | The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default |
| Courtesy Checks | come in the mail with your monthly credit card statement |
| Credit Bureau | a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc |
| Credit Crad | a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit |
| Credit History | A record of a consumer's ability to repay debts and demonstrated responsibility in repaying debts |
| Credit Limit | refers to the maximum amount a credit card company will allow someone to borrow on a single card |
| Credit Report | A detailed report of an individual's credit history prepared by a credit bureau and used by a lender to in determining a loan applicant's creditworthiness, including: 1 |
| Credit Score | a number assigned to a person that indicates to lenders their capacity to repay a loan |
| Debit | (of a bank or other financial organization) remove (an amount of money) from a customer's account, typically as payment for services or goods |
| Finance Charge | is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees |
| Grace Period | provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged |
| Interest Rate | the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding |
| Introductory Rate | (also known as a teaser rate) is an interest rate charged to a customer during the initial stages of a loan. The rate, which can be as low as 0%, is not permanent and after it expires a normal or higher than normal rate will apply |
| Late Payment Fee | is charged to a borrower who misses paying at least their minimum payment by the payment deadline. In order to avoid late fees, ensure that you pay at least the minimum amount by the due date |
| Lender | an organization or person that lends money |
| Line of Credit | an amount of credit extended to a borrower |
| Over-the-limit Fee | A fee charged by a credit card company if a credit card user exceeds the card's credit limit |
| Pre-approved | An evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend |
| Principle | The amount borrowed or the amount still owed on a loan, separate from interest |
| Term | a fixed or limited period for which something, e.g., office, imprisonment, or investment, lasts or is intended to last |
Created by:
jcorbin15
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