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Credit: Definitions
Relevant to Credit Cards, Mortgages, Lines of Credits, Car Loans and Other Forms of Credit (Page 3 of 3)
All Credit Words Defined On This Site:
- Joint Account
- A credit account held by two or more people. All persons can use the account and all are legally responsible to repay.
- Late Payment
- A payment made after the agreed upon due date in a credit contract. As a result, additional charges may be imposed.
- Lessee
- A person who signs a lease to get temporary use of property whether a home, vehicle or other property.
- Lessor
- A person or company that provides temporary use of property or equipment to another under a lease in exchange for periodic payment.
- Liability on an Account
- Legal responsibility to repay debt.
- Open-End Credit
- A line of credit that may be used over and over again up to a defined limit. Includes credit cards, overdraft credit accounts and home equity lines. of credit.
- Open-End Lease
- A lease with an extra payment after the property is returned in order to adjust for any change in the value of the property.
- Origination Fees
- Money paid to the lender for preparing your mortgage loan.
- Overdraft Checking
- A line of credit that allows you to write checks or draw money in an amount greater than your actual balance (the overdraft) with an interest charge on the overdraft.
- Point-of-Sale (POS)
- A terminal where you, the consumer, can pay for purchases including paying electronically without using a check.
- Points
- Also called Discount Points. Finance charges paid at the beginning of a mortgage in addition to monthly interest in order to
maintain or lower the interest rate charged. One point equals one percent of the loan amount.
- Punitive Damages
- Money awarded by a court over and above actual damages in order to punish the wrongdoer because of reckless or malicious acts.
Punitive damages can be more than two or three time greater than actual damages. Also called "exemplary damages."
- Rescission
- The cancellation or "unwinding" of a contract by law or by mutual consent of the parties involved.
- Security
- Real or personal property pledged by a borrower to a creditor in case of a default on a loan; see also collateral.
- Security Interest
- An interest in a property or portion of a property that secures the payment of an obligation.
- Service Charge
- A type of finance charge added to a bill. Examples for credit-related issues include a fee for triggering
an overdraft checking account or a percentage charge added to an overdue account or bill.
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