Glossary of Terms
Print this pageAnnual Percentage Rate (APR)
The cost of your credit as expressed as an annual rate.
Automatic Payment Plan
A service which automatically makes credit card payments by transferring funds from your checking or savings account.
Available Credit
The amount of unused credit available. Available credit is computed by subtracting the current unpaid balance from your total credit
line.
Balance Transfer
The process of moving an unpaid credit card balance from one issuer to another.
Billing Cycle
The interval between regular monthly statements. It includes the day after the previous billing cycle closing date through the
current closing date of the account.
Cash Advance
A cash loan drawn from the available credit of your credit card account. There is no grace period for cash advances. Interest accrues
daily until the complete balance is paid in full. Transaction fees may apply.
Convenience Check
A convenience check works like a personal check except the amount is charged as a cash advance to your credit card account. This
check can be written to your choice of recipients and for any amount up to your available credit limit. These types of checks are
posted as cash advances on your credit card statement, and transaction fees may apply.
Credit Limit
The largest amount you can carry as the unpaid balance on your credit card. If you exceed this amount an Overlimit Charge may be
imposed.
Equity
The value of a homeowner's unencumbered interest in real estate. Equity is the difference between the home's fair market value and
the unpaid principal balance of the mortgage and any liens. Equity increases as the mortgage is paid down and as the property
appreciates in value.
Fast Cash
A service which deposits cash advances from your credit card account into your personal checking or savings account.
Fixed Interest Rate
The interest rate is fixed and is not subject to automatic adjustment.
Loan to Value (LTV)
The percentage of the home's price that is paid for by a mortgage. If the buyer makes a $20,000 down payment and borrows $80,000 to
purchase a $100,000 home, the mortgage is 80 percent of the price of the house. Therefore, the loan-to-value ratio is 80%. When
refinancing a mortgage, the loan-to-value ratio is computed using the appraised value of the home, not the sale price.
PIN
Personal Identification Numbers (PINs) are secret numbers that customers use to access their accounts via ATMs.
Variable Interest Rate
The interest rate a borrower pays for the use of money, usually expressed as an index plus a spread. The interest fluctuates in
tandem with a rate index.
Equal Housing Lender