Credit history: A list of your debts and regular monthly expenses, including how much you owe and how timely you make your payments.
Credit rating: A rating that indicates how good a credit risk you are. Credit ratings are based on your personal credit history.
Credit report: A report that reflects your credit history. The lender orders this report from a credit bureau when you apply for a loan.
Customer agreement: A document provided by financial institutions that describes the costs and features of their accounts.
Debit: A withdrawal from an account. If you write a $25 check your account will have a debit of $25 when the check clears.
Debts: Money you owe.
Deposit: To put money into your account.
Default: Failure to pay back money. If you do not make agreed-upon payments, you default on your loan.
Direct deposit: Funds deposited directly into your account. With your agreement, payroll earnings, Social Security benefits, retirement earnings, and other checks you receive on a regular basis may be direct-deposited into your account.
Down payment: The part of a purchase that you pay when you buy an item such as a car or a house. The lender usually seeks a down payment to show that you are willing to invest in a purchase.
Economy: The way a society organizes to meet the physical needs of its people.
Electric Funds Transfer (EFT): Money transactions to or from checking and savings accounts that do not require paper (checks or cash) but use computer technology instead. Examples are direct deposit, automated teller machine (ATM), and debit card transactions.
Endorse: To sign the back of a check that is made out to you in order to release the funds.
Expenses: The amount of money you spend on a regular basis.
FDIC: Federal Deposit Insurance Corporation insures accounts at federal government-regulated financial institutions for up to $100,000 per account.
Forgery: When a person purposefully tries to withdraw money from your account by pretending to be you.
Gross annual income: Total yearly income from all sources before taxes are deducted.
Hold: The number of days a financial institution will hold a check before crediting your account.
Insufficient funds: At term meaning that the amount of money in your account is less than the amount you would like to withdraw.
Installment credit: A type of credit that allows you to borrow a specific amount of money at one time for a defined purpose. You repay a set payment each month.
Interest: A fee paid for the use of money. A financial institution will pay you interest for keeping your money. You will pay interest to a financial institution for the use of borrowed funds.
Loan processing: The takes a lender takes to decide if a buyer can qualify for a loan.
Market economy: An economic system in which goods and services must be purchased from others.
Market value: An expected sale price of something.
Minimum balance: Necessary amount of money on deposit to qualify for special services.
Minimum payment: Smallest possible monthly payment.
Monthly statement: Account summary mailed monthly to a customer.
National Credit Union Share Insurance Fund (NCUSIF): Fund that insures accounts at federal government-regulated credit unions for up to $100,000 per account.
Net income: Your total income after taxes and other withheld items such as Social Security or Medicare are taken out.
Noninstallment or service credit: A type of credit offered by some businesses and utility companies that allows you to pay for a used service at a later date.
Nontraditional credit history: A credit history you can prepare if you do not have credit cards or have never had a loan. It can include receipts and cancelled checks from your monthly payments for rent, utilities, and other bills.
Not sufficient funds (NSF): The expression used when a person tries to withdraw more money from an account than the existing balance.
Overdraft protection: A line of credit to cover insufficient funds.
Overdrawn: When more is withdrawn from an account than the existing balance.
Payment factor table: A table that you can use to calculate monthly payments and the cost of credit for the installment loans.
Predatory lender: A lender that directs a borrower away from loans with more affordable interest rates and instead offers the applicant a loan with a high interest rate, questionable fees, or unnecessary charges.
Principal: The amount you can actually borrow.
Purchase and sale agreement: A written contract that the buyer and seller sign. It includes all of the terms and conditions of the sale.
Qualify: To determine how much money you are able to borrow.
Revolving credit: A type of credit that allows you to borrow money at any time up to a set limit. As you pay back borrowed money, it becomes available again to borrow. (e.g. credit cards).
Secured credit: A type of credit requiring that you provide something of value to guarantee repayment of a loan.
Secured credit card: A fee that financial institutions sometimes charge for specific services. The service charge will vary depending on the type of account you have. Ask about service charges and fees before you select a financial institution or a type of account.
Stop payment: An order by a customer to a financial institution not to release issued funds (i.e. not to cash a check).
Subsistence economy: An economic system in which people provide for their own needs (e.g. agriculture and hunting).
Terms: The conditions of a loan, including the type, size of down payment, amount you can borrow, interest rate, and length of time to repay.
Unsecured credit: A type of credit that does not require you to provide something of value to guarantee repayment of a loan.
Credit rating: A rating that indicates how good a credit risk you are. Credit ratings are based on your personal credit history.
Credit report: A report that reflects your credit history. The lender orders this report from a credit bureau when you apply for a loan.
Customer agreement: A document provided by financial institutions that describes the costs and features of their accounts.
Debit: A withdrawal from an account. If you write a $25 check your account will have a debit of $25 when the check clears.
Debts: Money you owe.
Deposit: To put money into your account.
Default: Failure to pay back money. If you do not make agreed-upon payments, you default on your loan.
Direct deposit: Funds deposited directly into your account. With your agreement, payroll earnings, Social Security benefits, retirement earnings, and other checks you receive on a regular basis may be direct-deposited into your account.
Down payment: The part of a purchase that you pay when you buy an item such as a car or a house. The lender usually seeks a down payment to show that you are willing to invest in a purchase.
Economy: The way a society organizes to meet the physical needs of its people.
Electric Funds Transfer (EFT): Money transactions to or from checking and savings accounts that do not require paper (checks or cash) but use computer technology instead. Examples are direct deposit, automated teller machine (ATM), and debit card transactions.
Endorse: To sign the back of a check that is made out to you in order to release the funds.
Expenses: The amount of money you spend on a regular basis.
FDIC: Federal Deposit Insurance Corporation insures accounts at federal government-regulated financial institutions for up to $100,000 per account.
Forgery: When a person purposefully tries to withdraw money from your account by pretending to be you.
Gross annual income: Total yearly income from all sources before taxes are deducted.
Hold: The number of days a financial institution will hold a check before crediting your account.
Insufficient funds: At term meaning that the amount of money in your account is less than the amount you would like to withdraw.
Installment credit: A type of credit that allows you to borrow a specific amount of money at one time for a defined purpose. You repay a set payment each month.
Interest: A fee paid for the use of money. A financial institution will pay you interest for keeping your money. You will pay interest to a financial institution for the use of borrowed funds.
Loan processing: The takes a lender takes to decide if a buyer can qualify for a loan.
Market economy: An economic system in which goods and services must be purchased from others.
Market value: An expected sale price of something.
Minimum balance: Necessary amount of money on deposit to qualify for special services.
Minimum payment: Smallest possible monthly payment.
Monthly statement: Account summary mailed monthly to a customer.
National Credit Union Share Insurance Fund (NCUSIF): Fund that insures accounts at federal government-regulated credit unions for up to $100,000 per account.
Net income: Your total income after taxes and other withheld items such as Social Security or Medicare are taken out.
Noninstallment or service credit: A type of credit offered by some businesses and utility companies that allows you to pay for a used service at a later date.
Nontraditional credit history: A credit history you can prepare if you do not have credit cards or have never had a loan. It can include receipts and cancelled checks from your monthly payments for rent, utilities, and other bills.
Not sufficient funds (NSF): The expression used when a person tries to withdraw more money from an account than the existing balance.
Overdraft protection: A line of credit to cover insufficient funds.
Overdrawn: When more is withdrawn from an account than the existing balance.
Payment factor table: A table that you can use to calculate monthly payments and the cost of credit for the installment loans.
Predatory lender: A lender that directs a borrower away from loans with more affordable interest rates and instead offers the applicant a loan with a high interest rate, questionable fees, or unnecessary charges.
Principal: The amount you can actually borrow.
Purchase and sale agreement: A written contract that the buyer and seller sign. It includes all of the terms and conditions of the sale.
Qualify: To determine how much money you are able to borrow.
Revolving credit: A type of credit that allows you to borrow money at any time up to a set limit. As you pay back borrowed money, it becomes available again to borrow. (e.g. credit cards).
Secured credit: A type of credit requiring that you provide something of value to guarantee repayment of a loan.
Secured credit card: A fee that financial institutions sometimes charge for specific services. The service charge will vary depending on the type of account you have. Ask about service charges and fees before you select a financial institution or a type of account.
Stop payment: An order by a customer to a financial institution not to release issued funds (i.e. not to cash a check).
Subsistence economy: An economic system in which people provide for their own needs (e.g. agriculture and hunting).
Terms: The conditions of a loan, including the type, size of down payment, amount you can borrow, interest rate, and length of time to repay.
Unsecured credit: A type of credit that does not require you to provide something of value to guarantee repayment of a loan.
