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CC & Credit Reports
Term | Definition |
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Annual Fee | Any fee that is charged on an annual (yearly) basis |
Annual Percentage Rate (APR) | An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan |
Balance Transfers | Moving the outstanding debt from one piece of plastic to another card, usually a new one. |
Bankruptcy | The state of being completely lacking in a particular quality or value. |
Cash Advantages | A cash advance is a service provided by most credit card and charge card issuers |
Co-Signer | Cosign-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 | Convenience checks are blank checks you get in the mail |
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 Card | A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit |
Credit History | A credit history is a record of a borrower's responsible repayment of debts |
Credit Limit | Credit limit refers to the maximum amount of credit a financial institution extends to a client through a line of credit as well as the maximum amount a credit card company allows a borrower to spend on a single card |
Credit Report | A credit report is a detailed report of an individual's credit history |
Credit Score | A number assigned to a person that indicates to lenders their capacity to repay a loan |
Debt | The state of owing money |
Finance Charge | A 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 | Simple elegance or refinement of movement |
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 | An introductory rate (also known as a teaser rate) is an interest rate charged to a customer during the initial stages of a loan |
Late Payment Fee | A late payment fee (a late charge) is charged to a borrower who misses paying at least their minimum payment by the payment deadline |
Lender | An organization or person that lends money |
Line of Credit | An amount of credit extended to a borrower |
Over-the-Limit Fee | An over-limit fee is a fee charged when your balance goes over your credit limit (also known as over the limit fee) |
Pre-Approved | Pre-approval has two meanings: ... Although, to a typical consumer, "you're pre-approved" means "you already passed the approval process and therefore are guaranteed to be immediately granted the loan if you apply," the literal meaning is different |
Principle | The amount you still owe on a loan, not including interest |
Secured Loan | A secured loan, is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan |
Term | A fixed or limited period for which something, e.g., office, imprisonment, or investment, lasts or is intended to last |