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Access Checks |
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Access checks are also known as cash advance checks or convenience checks. Access checks are issued against a line of credit. The transaction is applied to the cash balance and a transaction fee is generally applicable. |
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Account in Good Standing |
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An account in good standing will have a positive effect and will generally reflect favorably on your creditworthiness. |
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ACH Payment |
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Any payments made online that will be reflected on your credit card billing statement are called ACH (Automated Clearing House) payments. |
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Add-on Interest |
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An interest rate that is computed at the beginning of the credit loan, then added to the principal amount so that all must be repaid, even if the credit loan is paid off early. |
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Additional Principal Payment |
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Additional money included with the loan payment in order to pay off the principle amount owed in order to pay off the loan faster. Over time, this practice will reduce the overall amount of interest paid to the credit lender agent by reducing the principle amount balance that accrues interest rates on the principle amount carried over each month. |
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Adjustable Rate Mortgage (ARM) |
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An ARM is a mortgage that has it's interest rate changes periodically, based on the changes in a specified rate index. |
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Adjusted Balance |
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A commonly used method by many credit card issuers in which they subtract all payments made during a given month, then they add the finance charges to the total ending balance due for that month period. |
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Adjustment Date |
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The adjustment date is the date in which an ARM on interest rate changes. |
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Affinity Card |
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A credit card offered by two organizations, one is a lending institution, the other is a non-financial group. Schools, nonprofit groups, pro wrestlers, popular singers and airlines are among those featured on affinity cards. Usually, usage of the card entitles holders to special discounts or deals from the non-financial group entitlements. |
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Air Miles |
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One of the most popular rewards type issued by airline affiliated co-branded credit cards. Air miles are earned with every purchase made using the credit card, and then transferred monthly to the card holders account with that airline. |
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Amortization |
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The word 'Amortization' refers to the repayment of a mortgage loan with regular payments to cover the principle and interest rate. |
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Amount Financed |
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The principal dollar amount that is financed on credit terms. This dollar amount could include the cost of the purchase and other items combined into the payment(s). |
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Annual Fee |
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A charge for having a credit card that is incurred once per year. Many cards do not have annual fees, however certain cards that offer rewards or membership perks for being a card holder do charge this fee.
The annual fee is the amount a credit lender charges a credit borrower to have a credit card account with the credit lender service. The fee is assessed once per calendar year. The amount of the credit borrowers annual fee varies based on the type of credit card account they have with the credit lender service.
The annual fee is charged to the credit card account just like any other vendor or service charge, and appears on the credit borrowers account statement in the same billing cycle during which the fee was charged to the account. |
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Annual Percentage Rate (APR) |
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The cost of credit as a yearly rate. |
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Application Fee |
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What the credit lender charges to process the document in which a prospective borrower details his or her financial situation in order to qualify for a loan through that credit lendor agent. |
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Appraiser |
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An appraiser is qualified by education, training and licensing. An appraiser will generally have experience to estimate the value of a property for documentation. |
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Appreciation |
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The terminology of 'Appreciation' is an increase in a property’s value due to changes in market value, market conditions, or directly related to property improvements. |
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APR |
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An acronym for Annual Percentage Rate. This is the amount of interest the card issuer charges for lending money. The APR can be either fixed rate or variable rate depending on the card. Credit card interest is usually compounded monthly. |
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Asset |
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An asset is anything of monetary value that is owned by a borrower, including real estate and any other personal property. |
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Asset Case |
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A bankruptcy proceeding in which there are non-exempt assets that might be available from the borrower in order to pay the claims of the creditors. |
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Assignment |
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An 'assignment' is the transfer of a mortgage loan from one person to another. |
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Assumable Mortgage |
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An assumable mortgage is a loan that can be taken over, or assumed, by any buyer when a home is sold. The loan note is simply transferred over to the new buyer and does not need to be paid off by the seller upon the sale or transfer of the property. |
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ATM |
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An acronym for Automated Teller Machine. It is a terminal that is activated and secured by a magnetically encoded credit card that allows customers of a bank or other financial institution to conduct certain transactions such as money deposits or money withdrawals at any ATM machine. An interconnection database of these terminals allows customers to conduct certain transactions around the world. Generally, ATM usages are subject to a surcharge fee for using the Automated Teller Machine network. |
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ATM Access Fee |
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A fee charged in addition to the individual account fees (if any) for an account holder to have access to the ATM network system. This fee can be monthly, weekly, or even an annual fee. |
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Authorized Credit Card User |
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An authorized credit card user is someone that the original credit card holder allows to use their credit card account. The original credit card holder should think carefully before allowing anyone to become an authorized user because they are allowing that person to use their account and the account holder assumes all the liabilities of other account users actions. The original account holder will remain responsible for the use of their account and each card issued on their account according to the terms of the agreement. This includes your responsibility for paying all charges incurred on the account made by any/all authorized user(s) of the account. |
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Authorized User |
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Any person to whom the original account holder has given permission to use their credit card account. |
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Automatic Payment |
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An arrangement made by the borrower to authorize pre-authorized withdrawals to be made from a checking or savings account in order to automatically pay regular monthly payments such as utilities, insurance, rent or mortgages. |
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Automatic Stay |
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A court injunction that immediately stops lawsuits, foreclosure, garnishment of wages and all collection agency activities against the debtor the moment a bankruptcy petition has been filed. |
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Automatic Transfer |
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A pre-arranged arrangement that will automatically move funds at certain specified times, often monthly, from an interest-bearing account or savings account into a non-interest, usually a checking account, for the purpose of payment on checks or other fund draft needs for that given month period. |
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Available Credit |
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A credit card holders available credit is the total amount of credit remaining on the credit card account. It is the amount you may charge or transfer to your credit card account.
Your available credit equals your total credit limit minus any outstanding balance. For example, if you have a $10,000 credit limit, and your balance is $3,000, your available credit line is $7,000.
If the credit card account currently has No Pre-Set Spending Limit, the "Available Credit" line is the amount of the "Credit Access Line" currently available for use, and the "Total Credit Limit" is the total amount of the "Credit Access Line" as defined within the Card member Agreement generally. (Read Your Agreement) |
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Average Daily Balance |
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The average daily balance on a credit card account is the balance that is carried over during the billing cycle, averaged by the number of days within the billing cycle. Creditors generally calculate the average daily balance by adding the balance at the end of each day, then dividing the total by the number of days within the billing cycle. This is the amount used to calculate the finance charges for that given month period. |
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