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Credit cards
Credit cards and credit reports
| Term | Definition |
|---|---|
| Annual fee | yearly charge by banks and financial institutions to customers for use of their credit cards |
| Annual percentage | the interest rate for a whole year, rather than just a monthly fee/rate |
| Rate (APR) | interest rate for a whole year, rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate |
| Balance transfers | the transfer of the balance in an account to another account, often held at another institution |
| Bankruptcy | 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 service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit |
| Co signer | A cosigner takes on the legal obligation to be a backup repayment source for the loan and, as such, reduces the risk for the lender and helps the borrower obtain a loan |
| Courtesy checks | blank checks provided by lenders that borrowers can use to access credit lines |
| 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 record of a borrower's responsible repayment of debts. |
| 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 record of the borrower's credit history from a number of sources, including banks, credit card companies, collection agencies, and governments. |
| 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 | any fee representing the cost of credit, or the cost of borrowing. |
| Grace period | a period immediately after the deadline for an obligation during which a late fee, or other action that would have been taken as a result of failing to meet the deadline, is waived provided that the obligation is satisfied during the grace period |
| 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 charged to a customer during the initial stages of a loan. |
| Late payment fee | a charge consumers pay when they fail to make a payment on a debt such as a loan or a credit card |
| 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 penalty charged by credit card companies when cardholders’ purchases exceed their credit limit |
| Pre approved | to approve (something or someone) in advance |
| Principle | the amount due on any debt before interest, or the amount invested before returns |
| 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 business conducted or services offered by a bank. |
Created by:
Mstalker22
Popular Finance sets