Parameter name: request
Translate Request has too much data
Parameter name: request
Credit Card and Personal Finance Terminology Made Simple
Glossary of common terms for use in Credit Card Help / Personal Finance Help: You will find this useful in understanding the terminology and fine print of monthly statements. It's also a good primer to review before applying for low interest credit cards, secured credit cards, student credit cards, mortgages or loans.
Access Account-Summarizes your credit card account information and available options online. Most credit card companies' online systems are very comprehensive and are good way to track your liabilities, points, rewards, airline miles and cash back credit cards.
Affinity Credit Card-A credit card offered in conjunction with an organization and a credit card issuer. A certain percentage of the finance charges generated from cardholders are donated to the charity or organization that is featured on the card.
Air Miles Credit Card-A point system that accumulates miles can be used for free travel or other discounts, air miles are earned each time you use your card. Most major U.S. Airlines offer these low interest credit cards. Airline Miles are often referred to as Frequent Flyer Miles.
Annual Fee-A fee charged by the credit card issuer to the card holder. This fee is most commonly associated with frequent flyer credit cards, or credit cards designed to help rebuild your credit rating.
Annual Percentage Rate also known as (APR)-Yearly percentage rate of the finance charge. The APR will be either a fixed or a variable rate. See "Fixed Rate" or "Variable Rate" below.
Appraisal Fee-A charge for estimating the value of property.
Automated Teller Machine (ATM)-Terminals or kiosks located on bank premises or stores, etc. through where customers can make deposits, withdrawals as they would at a bank or financial institution.
Available Cash-The amount of cash that can be withdrawn from your credit card as cash, usually what's known as a cash advance. A cash advance often has a different interest rate than does your credit card interest rate.
Average Daily Balance-The average account balance for a credit card billing cycle. Finance charges are based on this balance. You can determine your average daily balance by adding the balances of each day of the billing cycle together and then divide them by the number of days in the billing cycle.
Balance Transfer-The act of transferring the whole or partial balance of one credit card to another credit card. This is usually done by transferring balances of higher interest rate credit cards to a low interest credit card.
Balance Transfer Fee-A fee that may be charged to cardholders for processing the transfer of a balance from one card to another.
Balloon Payment-A sometimes larger and/or extra payment that may be charged at the end of a loan or lease.
Billing Cycle-The days between your last statement and the current statement. These cycles range from 20 to 35 days.
Billing Error-Any mistake on your statement as defined by the Fair Credit Billing Act.
Business Days-These are defined differently by different financial institutions. Check with your bank or issuer to determine how it counts business days under the Truth in Lending and Electronic Fund Transfer Acts.
Cash Access Line-The maximum amount of cash access that is assigned to your account.
Cash Advance-Obtaining cash from your credit card. Fees and interest rates may vary.
Cash Advance Fee-A fee charged for using your credit card to get cash. The fee will be either a percentage of the transaction or a flat fee.
Category-The type or classification of the merchant that billed the account.
Charge Card-This is not a credit card. These generally have an annual fee and require that the balance be paid monthly.
Classic Credit Card-The Visa version of a basic credit card. It generally has a lower credit limit. Closed-End Lease-A lease in which you are not responsible for the difference if the actual value of the item at the scheduled end of the lease is less than the residual value, but you may be responsible for excess wear-and-use charges and for other lease requirements.
Co-Branded Credit Card-A card usually offered in conjunction with a major merchant and a credit card issuer-two different companies promote together, often times you will notice two different logos printed on the card.
Collateral-Property, such as stocks, bonds or a car, offered to support a loan and subject to seizure should you default.
Convenience Checks-An access to cash advances by writing a check.
Cosigner-Another party who signs your loan and assumes equal responsibility.
Credit-An arrangement for deferred payment for goods and services.
Credit Bureau-A private firm that maintains consumer credit data files and provides credit information to authorized users for a fee. An agency that maintains your credit record; also known as a credit-reporting agency. The three main bureaus in the US are Experian, Equifax and TransUnion.
Credit Card-A card that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered
Credit History-A record of your borrowing and payment of debts.
Credit Insurance-Can be health, life, accident, or disruption of income insurance that assists in paying the outstanding balance on a debt. Often requires an additional fee but can be a good security measure.
Credit Line-the maximum credit that a customer is allowed.
Creditor-A person or business from whom you borrow or to whom you owe money and are obligated to pay.
Credit-Scoring System-A statistical system used to rate credit applicants according to factors relevant to creditworthiness.
Creditworthiness-Your past, present, and future ability to repay debts you have acquired.
Current Balance-The current amount owed in order to pay off a balance.
Daily Periodic Rate-Calculated by dividing the Annual Percentage Rate by 365 and rounding that figure to the fifth decimal place.
Date of Transaction-The actual date that a transaction was made.
Debit Card-Issued by the cardholder's bank, used to make purchases or to get cash from ATMs. Each purchase deducts money from the cardholder's checking account and works similar to a check.
Debit Card (EFT Card)-Looks similar to a credit card, may be used at an ATM or to make purchases, withdrawals, or other electronic fund transfers.
Debit Cards/ATM Cards-Debit and ATM cards provide a convenient and secure alternative to cash and checks. Allowing you to make purchases and to access your bank accounts through the use of an ATM machine.
Default-failure of a debt to be paid.
Disclosures-Information that must be given to consumers about their financial matters. Generally in the fine print, but important to read and understand.
Elderly Applicant-A person 62 years or older as defined in the Equal Credit Opportunity Act
Electronic Fund Transfer Systems (EFT)-These are systems and technologies that transfer funds electronically rather than by check.
Fair Credit Billing Act-Passed by Congress to help cardholders resolve billing problems with issuers. Gives cardholder certain rights when dealing with credit card issuers.
Finance Charge-The amount of interest charged to an account, the dollar amount credit will cost you.
Fixed Rate-A fixed annual percentage rate of the finance charge.
Frequent Flyer Miles Credit Card-Miles that can be used for free travel or other discounts, earned each time you make purchases with your frequent flyer credit card. Most major U.S. Airlines offer these cards. Frequent Flyer Miles Cards are sometimes referred to as Airline Miles Cards.
Gold Credit Card-A higher level of benefits are given to the card holder that may include added benefits not offered with a Classic or Standard credit card. The Gold Card credit line is generally higher.
Grace Period-The time allotted to pay your balance without being charged a fee or finance charge. Generally, 25 to 30 days.
Home Equity Line of Credit-A form of credit where the property serves as collateral.
Interest Charges-The price you pay to a lender for using borrowed money. Interest is charged as a percentage of your outstanding balance. This percentage, or interest rate, may vary over time.
Interest Rate-The yearly percentage rate of the finance charge, either fixed or variable rate. See "Fixed Rate" or "Variable Rate". The Interest Rate is also known as the Annual Percentage Rate (APR).
Introductory Rate-A low interest rate offered for a limited time, usually for the first 3 to 15 months. Sometimes called a "Teaser Rate" for enticing customers to apply for low interest credit cards.
Issuer-Institutions that provide a credit to a consumer through a payment card. Issuers can include banks, credit unions, savings and loan associations, and retailers, department stores or gasoline companies.
Joint Account-A credit account held by two or more persons. All account holders use the credit card and all assume legal responsibility to repay.
Late Payment-A payment made later than agreed in your credit contract, usually resulting in additional fees or charges.
Late Payment Fee-A fee charged due to overdue payment.
Lessee-The person to whom the item is leased. The lessee is required to make payments and to meet obligations specified in the agreement.
Lessor-The person or organization who leases, or arranges for the lease of items.
Liability on an Account-The legal responsibility to repay outstanding debt.
Low Interest Credit Card-Offers low interest rates and reduces your monthly expense. These are the most sought after cards.
Mastercard-The institution that licenses it's corporate brand to member banks for use on credit cards and other financial products.
Minimum Monthly Payment-The minimum amount a cardholder is required to pay to maintain good standing with the issuer or bank.
New Balance-The amount owed as of the statement closing date.
Next Closing Date-The date your next statement will be created.
Open-End Credit-Credit that may be used repeatedly, including credit cards, overdraft credit accounts, and home equity lines of credit.
Open-End Lease-A lease in which the amount you owe at the end of the lease term is based on the difference between the residual value of the leased property and its realized value. Open end involves an additional payment, the amount of which depends on the value of the property when it is returned
Outstanding Balance-The total amount of money that is owed after a payment is made.
Over Credit Limit Fee-Fees charged when your balance exceeds your credit limit.
Over the Limit-When a borrower has accessed an amount of money greater than what is available in their line of credit.
Overdraft Checking-Allows you to write checks or draw funds with an EFT card for more than your balance.
Overdrawing an Account-Withdrawing more money from an account than is currently available. Can result in a fees or check declines.
Payment Cards-Credit, charge and debit cards. Allows consumers to make purchases online, on the telephone or in person.
Payment Due Date-The day your payment is due.
Post Date-The date the transaction appeared and was posted to the account.
Prime Rate-The Prime Rate is the interest rate that banks charge to their best, most creditworthy customers. The rate is usually consistent across the larger banks. This rate fluctuates in response to changing economic conditions. The Prime Rate is used as a factor in determining the Annual Percentage Rate on consumer loans, credit cards and mortgages. Any consumer loan tied to the Prime Rate is a variable rate loan, which means that the loan's APR can increase or decrease.
Prior Closing Date-The date that the last billing statement was produced.
Periodic Rate-The interest rate of a specified period of time, often referred to as a monthly periodic rate or daily periodic rate.
Platinum Credit Card-Offered to people with higher incomes and good historical credit ratings and FICO scores. This card has a minimum credit limit of $5,000 and may include generous member benefits.
Point-of-Sale (POS)-Paying for purchases by having accounts debited electronically without the use of checks.
Points/Origination Fees-Fees paid to the lender. One point equals 1 percent of the loan amount. In some cases, the money needed to pay points can be borrowed, but doing so will increase the loan amount and the total costs. Points are usually paid in cash at closing. An origination fee covers the lender's preparation work involved in extending the credit or loan.
Pre-Approved-Having passed the preliminary screening process of credit card applications.
Prime Rate-The lending rate set by the Federal Reserve to banks.
Realized Value-The price the lessor or assignee receives for the leased item at disposition, the highest offer for the leased item at disposition, or the fair market value of the leased item at termination. The realized value may be either the wholesale or the retail value as specified in the lease agreement.
Rebate Credit Card-Allows a cardholder to earn points, cash back, merchandise, or services for using the card.
Rescission-The cancellation of a contract.
Residual Value-The end of term value of the item established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined in part by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease.
Secured Credit Card-A card that is secured by a savings account opened with the issuer. Ideal for those seeking to rebuild their credit, but are having trouble getting an unsecured card.
Security Interest-The creditor's right to take property or a portion of property offered as security.
Security-Property pledged in case of an incidents of defaulting.
Service Charge-Fees charged for overdraft checks.
Standard Credit Card-The Mastercard version of a basic credit card. Generally has a lower credit limit.
Total Available Credit-The amount available for purchases as of the statement closing date.
Total Available to Transfer-The amount available for transfers to your account.
Total Credit Line-The maximum amount of credit assigned to the account.
Transaction-The title used in the transaction (ie: the merchant name).
Titanium Credit Card-Offered to people with higher incomes and good historical credit ratings and FICO scores. This card has a credit limit above the Platinum level and may include generous member benefits.
Truth in Lending Act-A law requiring lenders to provide information to borrowers concerning the ability to compare one loan to another.
Unsecured Credit Card-A credit card that is not secured by forms of collateral. Unsecured cards are the most popular cards that are issued.
Update Your Address-Maintains current contact information. Important for banking relationships.
Variable Rate-A rate that can increase or decrease with the changes of the Prime Rate.
Visa-An institution that licenses it's corporate brand to member banks for use on credit cards and other financial products.
No comments:
Post a Comment