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CFM#3 Credit & Rep.
Credit Cards & Reports
| Term | Definition |
|---|---|
| Annual Fee | A yearly charge by banks and financial institutions to customers for use of their credit card |
| Annual Percentage Rate (APR) | The interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, and etc. |
| Balance Transfers | the transfer of (part of) the balance (either of money or credit) in an account to another account, often held at another institution |
| Bankruptcy | a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts |
| Cash Advances | a short-term loan from a bank or an alternative lender |
| Co-Signer | a person who has agreed to guarantee the debt of another individual but does not receive any of the loan proceeds |
| Courtesy Checks | 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 payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges |
| Credit History | a record of a borrower's responsible repayment of debts |
| Credit Limit | the maximum amount you can charge on a revolving credit account, such as a credit card |
| Credit Report | a summary of your financial history |
| Credit Score | a number assigned to a person that indicates to lenders their capacity to repay a loan |
| Debt | an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor |
| Finance Charge | any fee representing the cost of credit, or the cost of borrowing |
| Grace Period | a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation |
| 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 interest rate that's usually below-market and is offered for the initial billing cycles of the credit card |
| Late Payment Fee | 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 | a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds |
| Over-the-Limit-Fee | a fee charged when your balance goes over your credit limit |
| Pre-Approved | a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer |
| Principle | an amount of money you invest, the face amount of a bond, or the balance you owe on a debt, distinct from the finance charges you pay to borrow |
| Secured Loan | a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan |
| Term | the length of time between when a fixed-income security, such as a bond or note, is offered for sale and its maturity date |
Created by:
kprocknal21
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