Personal Finace

Annual fee

Yearly fee charged (but not always) by credit card issuers for use of their service – usually between $15 and $55. 

APR (annual percentage rate)

- A yearly rate of interest that includes fees and costs paid to  acquire the loan.  

Billing cycle

The number of days between the last statement date and the current statement  date.  

Co-signer

- An individual who agrees to repay a loan or consumer debt if the borrower defaults.  Their credit report will be positively or negatively affected by the borrower's credit history. 

Credit limit

- The maximum amount you can charge on a credit account. 

Credit report or Credit history

- A document containing financial information about a person,  focusing on his or her history of paying obligations, such as a mortgage, car payment, utilities, and  credit cards. Also includes current balances on outstanding debts, the individual's amount of  available credit, public records such as bankruptcies, and inquiries about credit from various  companies. 

Credit score

Numeric value compiled from information in a credit report using a standardized  formula that ranks the risk of default according to a person’s credit history. 

Disclosure statement (Schumer Box)

The reporting of the exact terms and conditions under  which credit will be extended prior to applicant signing up for the card. (For example: APR, fees,  major conditions of credit card) 

Grace period

– The time period you have to pay the bill in full and avoid interest charges. 

Installment (closed end) credit

- A loan that is paid in equal monthly installments with a fixed  interest rate. Loan payments include principal and finance charges and are a form of closed  credit. 

Minimum payment

– A fixed percentage of the balance due which must be paid each month. 

Revolving (open end) credit

– Allows the borrower to use a certain amount of money for an  indefinite period of time. As long as the borrower makes payments on a schedule, pays any finance charges, and stays within the borrowing limit, he or she can continue to use the credit. 

Collateral

– An asset such as an automobile or a piece of property that a person uses  when taking out a loan, promising to give the asset to the lender if loan payments  cannot be met. 

Invoice price

– The price the dealer paid the manufacturer for the car. 

Lemon laws

– Varies from state to state. New vehicle that has been in the shop at least  4 times for the same repair, or is out of service for thirty days or more during the first  year.

List price/Retail price/Sticker price

– or manufacturer’s suggested retail price (MSRP)  is the retail price that the manufacturer sets for the car. (Usually 10-15% above the  dealer’s price.) Sticker price is only a suggested price – dealers can charge more or  less. Does not include destination (transportation) charges or dealer-installed options. 

Miles per gallon (MPG)

– The average number of miles a car travels on one gallon of  gasoline. 

Preventive maintenance

– automotive service that keeps a car running well and  prevents major problems. 

Repossessed

– Cars taken back because of missed loan payments. (Sometimes sold  by banks and finance companies.) 

Title

– Document that proves you legally own the car. 

Trade-ins

– The cars that new-car buyers turn in as partial payment on their new-car  purchases. 

Vehicle Identification Number (VIN

– A unique number assigned to a car at the  factory for identification purposes. NOTE: Check out the history of any car built since  1981 by logging on to CARFAX at http://fin.emcp.net/carfax (fees may apply).

Adjustable rate mortgage (ARM)

—a mortgage in which the interest rate is adjusted  up or down periodically.

Assessed value

—value assigned to the property by the city or county that is used to  compute property taxes. 

Closing costs

—fees that must be paid before the sale of a home can be made final. 

Eviction

—legal process of removing a tenant from rental property. 

Fixed rate mortgage

—a mortgage that guarantees a fixed or unchanging interest rate  for the life of the loan. 

Landlord

—owner of rental property 

Lease

—written agreement that allows a tenant to use property for a set period of time at  a set rent payment. 

Market value

—highest price that the property will bring on a competitive open market.

Mortgage

—a home loan. The home is used as collateral.  

Security deposit

—amount of money a renter pays a landlord to insure against financial  losses if the renter damages the dwelling or fails to pay rent. 

Tenant

—one who pays rent to occupy property