Glossary:

Annual Fee

The annual cost of membership to a particular credit card account. Most banks now have products without annual fees.

Annual Percentage Rate (APR)

This shows how much credit will cost you on a yearly basis.

ATM Card

A card used in an automated teller machine (ATM) to access a credit or a debit account to complete banking inquiries and fund transfers between accounts.

ATM surcharge:

Fee charged for a non-account holder to use a bank-owned ATM. Charges range from $.50 to over $5.00 per ATM transaction depending on the Bank.

Credit Bureau

Credit bureaus collect and report vital facts about your financial habits, for instance, whether or not you pay your bills on time. These facts are then compiled into a "credit report," which can be accessed by potential creditors, employers, and the like. The three major credit reporting agencies are Equifax, Experian and TransUnion. You can contact them at the addresses below.

Equifax
P.O. Box 105873
Atlanta, GA 30348
1-800-685-1111
http://www.equifax.com Experian
P.O. Box 2104
Allen, TX 75013-2140
1-888-397-3742
http://www.experian.com TransUnion
P.O. Box 390
Springfield, PA 19064
1-800-916-8800
http://www.transunion.com

Credit Card

These cards allow you to "buy now, pay later". However, if you do not pay your balance in full, you are assessed finance charges. To protect your credit rating, be sure to pay at least the minimum amount due by the payment due date.

Credit Report

The record of your credit history. It shows whether you pay your bills on time, how much debt you have, and the like. Your report is compiled by credit bureaus and released to lenders and others.

Debit Card

A convenient way to "pay as you go," this enhanced ATM card subtracts money from your account when you use it to make a purchase or get cash.

Finance Charge

The total cost of credit including service fees, late fees, and transaction fees.

Grace Period

If you have a credit card, the period of time the issuer doesn't charge interest on purchases. Be sure to read the fine print; Some credit card issuers give a grace period only if the account is paid up and doesn't have a balance carried over from the previous month.

Interest Rate

Credit is not free! When you use money provided by a bank or financial institution, the interest rate reflects the amount the organization charges for that service.

Introductory APR

A temporary, usually low, interest rate (expressed as a yearly rate) offered by providers to "introduce" you to their services. It will usually go up after a certain amount of time.

Minimum Payment

Shown on your credit card statement, the lowest amount you can pay every month, based on that month's balance at the time of billing.

Returned or "bounced" check charge:

The amount of money charged to an account holder whose account has insufficient funds available to pay the check, which is returned to the party who cashed it, unpaid.

Transaction Fees

Fees charged when you make certain types of transactions. Transaction fees are typically assessed on cash advances and cash-like transactions, such as money orders and wire transfers.

Truth in Lending Act (Implemented by Federal Reserve Regulation Z)

This federal law protects you by making sure lenders tell you about the costs, terms, and conditions at the time they offer you a loan or credit card.

Glossary: Annual Fee The annual cost of membership to a particular credit card account. Most banks now have products without annual fees. Annual Percentage Rate (APR) This shows how much credit will cost you on a yearly basis. ATM Card A card used in an automated teller machine (ATM) to access a credit or a debit account to complete banking inquiries and fund transfers between accounts. ATM surcharge: Fee charged for a non-account holder to use a bank-owned ATM. Charges range from $.50 to over $5.00 per ATM transaction depending on the Bank. Credit Bureau Credit bureaus collect and report vital facts about your financial habits, for instance, whether or not you pay your bills on time. These facts are then compiled into a "credit report," which can be accessed by potential creditors, employers, and the like. The three major credit reporting agencies are Equifax, Experian and TransUnion. You can contact them at the addresses below.
Equifax P.O. Box 105873 Atlanta, GA 30348 1-800-685-1111 http://www.equifax.com	Experian P.O. Box 2104 Allen, TX 75013-2140 1-888-397-3742 http://www.experian.com	TransUnion P.O. Box 390 Springfield, PA 19064 1-800-916-8800 http://www.transunion.com
Credit Card These cards allow you to "buy now, pay later". However, if you do not pay your balance in full, you are assessed finance charges. To protect your credit rating, be sure to pay at least the minimum amount due by the payment due date. Credit Report The record of your credit history. It shows whether you pay your bills on time, how much debt you have, and the like. Your report is compiled by credit bureaus and released to lenders and others. Debit Card A convenient way to "pay as you go," this enhanced ATM card subtracts money from your account when you use it to make a purchase or get cash. Finance Charge The total cost of credit including service fees, late fees, and transaction fees. Grace Period If you have a credit card, the period of time the issuer doesn't charge interest on purchases. Be sure to read the fine print; Some credit card issuers give a grace period only if the account is paid up and doesn't have a balance carried over from the previous month. Interest Rate Credit is not free! When you use money provided by a bank or financial institution, the interest rate reflects the amount the organization charges for that service. Introductory APR A temporary, usually low, interest rate (expressed as a yearly rate) offered by providers to "introduce" you to their services. It will usually go up after a certain amount of time. Minimum Payment Shown on your credit card statement, the lowest amount you can pay every month, based on that month's balance at the time of billing. Returned or "bounced" check charge: The amount of money charged to an account holder whose account has insufficient funds available to pay the check, which is returned to the party who cashed it, unpaid. Transaction Fees Fees charged when you make certain types of transactions. Transaction fees are typically assessed on cash advances and cash-like transactions, such as money orders and wire transfers. Truth in Lending Act (Implemented by Federal Reserve Regulation Z) This federal law protects you by making sure lenders tell you about the costs, terms, and conditions at the time they offer you a loan or credit card.