Annual Percentage Rate (APR)
This refers to the annual interest on a loan or credit card.
The interest rate charged on a loan, credit card, or mortgage over a year’s time
Annual Charges or Fees
You pay these yearly fees to the credit card company for using their card. This is part of your credit card statement.
Poor Credit Score
Credit Score is a mathematical expression of one’s financial transactions over a period. Three credit bureaus compile the score basis various reports received from different creditors and credit card companies. Missed payments or late payments and defaults lower the score. Average score is considered to be approximately 650, and anything below this is considered a poor credit.
When you have an unpaid balance on your credit card or loan account and transfer the same to another creditor, usually to lower your interest rates or for other added benefits. There may be a fee charged for this facility, known as the “balance transfer fee”,
This is a legal procedure of declaring one’s inability to pay off one’s debts. Involuntary bankruptcy is initiated by the borrower, though the creditor can also initiate a bankruptcy petition against the borrower.
Credit Cards Cash Advance
This facility is provided by many credit cards that allow you to draw cash advance through ATMs. This attracts a cash advance fee and usually has a higher interest rate.
- Smart Shopping Helps Healthy Finances
- Debt Solutions Essential for a Brighter Future
- Beware Scammers as you try to Repair your Credit
- Guard Against the Loss of your Vehicle
- Be Certain of your Commitment When Co – signing a Loan
- Find Best Credit Card Options
Cash Advance Loan
These are small amounts of money that needs to be repaid back quickly. No credit check is required under these loans. Interests charged on these loans are high and hence one should take them as a last resort.
Chapter 7 Bankruptcy
Under this provision, the person filing for bankruptcy is allowed to hold some assets, which can help them, recoup their financial status while the rest of them is sold to repay the debts of the creditors.
Chapter 13 Bankruptcy
If one holds a higher equity in the home and wants to retain the same even under bankruptcy, he can go to the chapter 13 bankruptcy. The individual is required to clear the delinquent accounts within a period of 3-5 years and then all payments are to be made to the trustee without any contact with the creditors.
These are popularly known as the rating agencies, which collect information about financial transactions of an individual from different sources. They compile the same into a report, which contains the history of the transaction often referred to as a credit report, and calculate credit scores based on the same.
This is the defined as the maximum amount, which credit card company or lender agrees to offer to its customers.
It consists of the Details of an individual’s payment history and transactions.
This is a numerical value arrived at because of a series of complex calculations made by the credit bureau. The value ranges between 300 and 850, where a higher value is an indication of financial credit worthiness of an individual.
These are issued by the banks to its customers to facilitate cashless transactions from their accounts by the use of the plastic cards. These are directly linked to an individual’s bank account and hence one can spend on them in relation to the available cash there.
It refers to the clubbing of debts, repayment of the same with the help of another loan at a good interest rate and for a long term.
It refers to a financial state where the borrower fails to repay the debts.
It refers to the underwriting process where the loans are approved within a few hours.
It refers to a change in terms of the loan due to changed economic scenario or on the request of the borrowers.
It refers to the minimum amount required to be paid by the borrower or the credit card holder on the due date of the debt.
This refers to the status where individuals have taken no loans and hence have no records for the same with any of the bureaus.
It is a short-term loan characterized by high interest rate and payable on the next payday. These are taken to covering the urgent cash requirements in the middle of the month.
The cardholder needs to put an amount on the card to be able make purchases from the same.
An act of getting another loan based on the current loan. It is generally done with the purpose of lowering the interest rate on the current loans. Loan amount may remain the same, but the terms of payments and the monthly commitments are lower.
Reports to Credit Bureaus
Credit card companies and those in the financial business often agree to share the financial information related to the transactions and the payments made, delayed, or defaulted to the credit bureaus so that the same could be incorporated in the individual’s credit history. This is further used to calculate the credit score, which is an indicator of the credit worthiness of an individual.
A lender may take back the rights of the collateral, assets in case the borrower fails to make the repayment of the debt.
Secured Credit Card
Credit card companies offer these secured cards to borrowers who agree to make a deposit on the card in advance. Generally, the companies charge a nominal fee amount to maintain the statement of the accounts on these cards. These cards are generally taken by the students and act as a precursor to the normal credit cards.