Glossary

source: https://www.citicards.com/cards/wv/html/cm/glossary/a.html

Annual Fee: The cost a credit card holder pays each year to credit card companies that charge these fees Fixed Expenses: Expenses that you pay every month and cannot change (ex: mortgage, rent, car payments, child care) Taxable Income: Any money that you receive that the government (Federal, state, or local) can tax (ex: salary) Outstanding Balance: The total amount that you owe on your credit card Finance Company: A business that makes consumer loans that usually have high interest rates Daily Periodic Rate: The way to calculate the daily interest charge (the yearly rate/365) Deferred Payment: Payments that are put off or extended -Ashley Sanders

Transaction Date: The date that a purchase is made or that cash is withdrawn Fair Credit Billing Act: A law that ensure that you are able to fix billing mistakes if you find them Installment Loan: A loan that you pay back by paying the same amount of money regularly (usually monthly) Over-the-Limit Fee: A fee charged for exceeding your credit limit Debt: The amount of money that you have borrowed and not yet paid back Delinquency: When loan payments are not made according to the terms of agreement (usually results in late fees) Transaction Fee: An extra card for credit activities (ex: using an ATM) - sarah reeder

Credit Card Debt: The total unpaid balances on ALL of your credit cards Credit Management: The way that people handle the money borrowed from banks or credit issuers (ex: how timely their payments are) Variable Interest Rate: An interest rate that can change bases on an economic index (ex: Prime Rate plus a percentage=variable interest rate) Fair Debt Collection Practices Act: A federal law that states that all individuals are protected from being harassed by debt collectors Affinity Credit Card: A credit card that is sponsored by 2 or more organizations Asset: Cash, or anything a person owns that could be turned into cash (ex: goods or investments) Available Credit: The unused portion of a person's credit line (credit limit-current balance) -Carolyn Schauber

Periodic Rate: Interest rates based on a certain amount of time (ex: monthly, daily, annually) Principal: The portion of a loan that is the actual amount of money borrowed (does not include interest) Non-taxable Income: Money earned that the government cannot tax (ex: disability pay) Minimum Amount Due/Minimum Payment: The smallest amount you can pay by the due date and still meet the terms of your card agreement Finance Charges: Consumer credit expressed as a dollar amount Fair Credit and Charge Disclosure Act: A federal law that grants people the ability to get any facts they need to make good credit choices Liability: Responsibility for a loan or credit account -Christina Traficante source sited:https://www.citicards.com/cards/wv/html/cm/glossary/a.html


 * Bankruptcy**: the legal declaration of your inability to repay your debts. Bankruptcy should be viewed as a last resort. It will have a severe impact on your credit rating and will remain on your credit report for up to ten years. Furthermore, bankruptcy is not a solution in all cases. Federal student loans, Federal tax debt and child support are all exempt from bankruptcy protection. Bankruptcy agreements vary but there are two types of agreements that most people choose: Chapter 7 and Chapter 13.
 * Cash Advance:** A cash withdrawal at an automated teller machine, bank teller or by use of a convenience check. This cash is an instant loan from your credit card account. The credit card company will apply finance charges from the day you take the advance until the day you pay it off. A transaction fee may also be charged based on the amount of your withdrawal. Other transactions, which may be considered cash advances, include gaming activities and some balance transfers.


 * Finance Charges:** Finance charges are the cost of consumer credit expressed as a dollar amount. They include any charges, such as interest and fees, paid by the consumer to the creditor for obtaining a loan.

-Kristin Murphy
 * Periodic Rate:** The interest rate described in relation to a specific amount of time. For example, the monthly periodic rate is the cost of credit per month; the daily periodic rate is the cost of credit per day.
 * Prime Rate:** The Prime Rate is the interest rate that major banks charge to many of their best corporate borrowers. Each bank sets it own Prime Rate, though because the rate is so competitive, most of the time the rate is the same at all banks. The Prime Rate is reported daily in many publications, including The Wall Street Journal.
 * Principal:** Principal is the portion of a loan that represents the actual amount of money borrowed. Principal is separate from interest. In terms of credit cards, principal represents the price of purchased items or the amount of a cash advance.
 * Unsecured Debt:** This is debt that is not guaranteed by collateral, therefore, no assets are committed in the event of default. If the issuer is unable to collect on the loan, its value is lost. Most credit cards are unsecured. As the Cardmember's promise is the only guarantee, credit card issuers require more information regarding income and credit history than with a secured loan.