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Credit Cards
| Term | Definition |
|---|---|
| Annual Fee | An annual fee is a fee you pay each year just for having a credit card, whether you use the card or not. Virtually every credit card charges fees, but not all of them charge an annual fee. |
| Annual Percentage | The annual percentage rate is the percentage of interest the individual must pay on the loan, which ultimately adds up to the total cost of the loan. |
| Rate (APR) | An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. |
| Balance Transfers | A balance transfer is the transfer of (part of) the balance (either of money or credit) in an account to another account, often held at another institution. It is most commonly used when describing a credit card balance transfer. |
| Bankruptcy | the state of being bankrupt. |
| Cash Advances | A cash advance is a short-term loan from a bank or an alternative lender. The term also refers to a service provided by many credit card issuers allowing cardholders to withdraw a certain amount of cash. |
| Co-signer | a person who signs a loan or lease jointly with another in order to guarantee payment. |
| Courtesy Checks | Courtesy Checks are credit union checks with funds deducted directly from the member’s account. |
| 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 | Credit history is a record of a consumer's ability to repay debts and demonstrated responsibility in repaying debts. This information is all contained on a consumer's credit report. |
| Credit Limit | A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit. |
| Credit Report | A report containing detailed information on a person's credit history, including identifying information, credit accounts and loans, bankruptcies and late payments, and recent inquiries. |
| Credit Score | a number assigned to a person that indicates to lenders their capacity to repay a loan. |
| Debt | something, typically money, that is owed or due. |
| 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 | a period officially allowed for payment of a sum due or for compliance with a law or condition, especially an extended period granted as a special favor. |
| 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 | A low rate offered for financing as an incentive to apply for said financing. This rate is usually lower than the typical market rate of interest and offered for a limited time. |
| 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. |
| Pre-Approved | A pre-approval is a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer. |
| Principle | Business principles are foundational statements that are adopted by an organization, department or team to guide future decisions. An organization may publish its principles to the public and a team may publish its principles to its organization. |
| 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 | In the finance world, a term is the length of time until a debt matures. A term can also be a condition of a deal, as evidenced by the phrase term sheet, which describes the terms of a deal. |
Created by:
cvancheri20
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