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All terms starting with "D"
Your annual percentage rate expressed on a daily b … moreYour annual percentage rate expressed on a daily basis.
Credit industry term for someone who pays off thei … moreCredit industry term for someone who pays off their entire revolving debt each month, so as not to accrue interest on their credit accounts.
An accounting term that refers to a charge to some … moreAn accounting term that refers to a charge to someone's account. Debit cards are called that because they are used to take money from a checking or savings account. When you write a check, get money from an ATM, or take money back when you make a debit card purchase at a merchant, these are also considered debit transactions.
Swiping a debit card is the exact same thing as wr … moreSwiping a debit card is the exact same thing as writing a check. When you buy something with a debit card, the purchase price is automatically deducted from your checking account. You then receive your monthly purchase statement from your own bank, but you do not need to make any payments because the money has already been withdrawn from your checking account.
As is the case with credit cards, international us … moreAs is the case with credit cards, international use of a debit card may trigger a special fee. The structure and amount of the fee depend on the bank and the nature of the transaction. For example, if the debit card is used to withdraw money from an ATM, several different fees might be layered together. (See Foreign ATM Fee.) If the debit card is used to make a point-of-sale payment, such as at a store, hotel, or restaurant, the fee will resemble a credit card foreign transaction fee, and may amount to about 1% to 3% of the transaction.
Certain debit cards offer rewards such as points o … moreCertain debit cards offer rewards such as points or cash back that can be earned on qualifying purchases.
Debt:
Monies owed.
Gathering multiple sources of debt under one umbre … moreGathering multiple sources of debt under one umbrella, often with a reduced payment rate and longer repayment period.
The ratio of the sum of all your credit card balan … moreThe ratio of the sum of all your credit card balances relative to the sum of the credit lines of your credit cards.
For example, if you had 2 credit cards and each one had a credit line of $100 and a balance of $50 then your Debt-to-Available-Credit Ratio would be ($50+$50) / ($100+$100) = 50%
For example, if you had 2 credit cards and each one had a credit line of $100 and a balance of $50 then your Debt-to-Available-Credit Ratio would be ($50+$50) / ($100+$100) = 50%
The percentage of before-tax earnings spent to pay … moreThe percentage of before-tax earnings spent to pay off home loans, auto loans, student loans, credit card balances, and the like. Lenders look at a front-end ratio and a back-end ratio. The front-end ratio is the percentage of monthly before-tax earnings that are spent on house payments (including principal, interest, taxes and insurance). In the back-end ratio, other debts are factored in.
Technically, someone who has filed a petition for … moreTechnically, someone who has filed a petition for relief under bankruptcy laws. More generally, a debtor is someone who owes money.
A Chapter 11 debtor assumes trustee duties for his … moreA Chapter 11 debtor assumes trustee duties for his or her own assets, and does not liquidate them. Such a debtor owes his or her highest loyalty to the estate's creditors, as a fiduciary for the creditors of the estate.
The first page (or pages) of an insurance policy t … moreThe first page (or pages) of an insurance policy that defines who is covered, what losses are covered, the term of the policy and other important information about the insurance coverage being provided.
The out-of-pocket cost a policyholder must pay bef … moreThe out-of-pocket cost a policyholder must pay before insurance will begin to pay for a claim.
Generally speaking, an insurance policy with low deductibles will have higher premiums than an insurance policy with high deductibles.
Generally speaking, an insurance policy with low deductibles will have higher premiums than an insurance policy with high deductibles.
An amount that can be subtracted from your gross i … moreAn amount that can be subtracted from your gross income, thereby lowering your ultimate taxable income and your tax bill.
There are myriad types of potential deductions, some of which you can always take, and others only if you itemize your deductions, as opposed to accepting the standard deduction.
There are myriad types of potential deductions, some of which you can always take, and others only if you itemize your deductions, as opposed to accepting the standard deduction.
Violation of your terms and conditions agreement; … moreViolation of your terms and conditions agreement; failure to pay your loan / credit card as agreed.
The penalty interest rate assessed on a credit car … moreThe penalty interest rate assessed on a credit card, which is in default. Default APRs are usually above 20 percent.
The definition of whether you are in default or not varies between credit card companies and based on whether you are using a small business credit card vs. a general consumer credit card. For some credit card companies, having missed a payment and/or having gone over limit can be considered as being in default.
Some cards have a 'Default APR' and a 'Max Default APR' for seriously defaulted accounts.
The definition of whether you are in default or not varies between credit card companies and based on whether you are using a small business credit card vs. a general consumer credit card. For some credit card companies, having missed a payment and/or having gone over limit can be considered as being in default.
Some cards have a 'Default APR' and a 'Max Default APR' for seriously defaulted accounts.
The penalty interest rate assessed on a credit car … moreThe penalty interest rate assessed on a credit card, which is in default. Default APRs are usually above 20 percent.
The definition of whether you are in default or not varies between credit card companies. For some credit card companies, having missed a payment and/or having gone over limit can be considered as being in default.
Some cards have a 'Default APR' and a 'Max Default APR' for seriously defaulted accounts.
The definition of whether you are in default or not varies between credit card companies. For some credit card companies, having missed a payment and/or having gone over limit can be considered as being in default.
Some cards have a 'Default APR' and a 'Max Default APR' for seriously defaulted accounts.
The penalty interest rate assessed on a credit car … moreThe penalty interest rate assessed on a credit card, which is in default. Default APRs are usually above 20 percent.
The definition of whether you are in default or not varies between credit card companies. For some credit card companies, having missed a payment and/or having gone over limit can be considered as being in default.
Some cards have a 'Default APR' and a 'Max Default APR' for seriously defaulted accounts.
The definition of whether you are in default or not varies between credit card companies. For some credit card companies, having missed a payment and/or having gone over limit can be considered as being in default.
Some cards have a 'Default APR' and a 'Max Default APR' for seriously defaulted accounts.
Holding off on paying your debt.
Fancy term for saying that you are late on a loan … moreFancy term for saying that you are late on a loan or credit card payment.
Delinquency is measured in days, which correspond to the number of payments you have missed. That is why you'll sometimes hear "30 days delinquent" or "60 days delinquent", which would mean that you've missed one or two monthly payments, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Delinquency is not reported to the major credit bureaus and you therefore do not incur credit score damage as a result of it until you have missed two consecutive payments (i.e. you're at least 60 days delinquency). In order to return your account to good standing, you must make payments for the number of months behind you are, plus the current month.
Delinquency is measured in days, which correspond to the number of payments you have missed. That is why you'll sometimes hear "30 days delinquent" or "60 days delinquent", which would mean that you've missed one or two monthly payments, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Delinquency is not reported to the major credit bureaus and you therefore do not incur credit score damage as a result of it until you have missed two consecutive payments (i.e. you're at least 60 days delinquency). In order to return your account to good standing, you must make payments for the number of months behind you are, plus the current month.
Fancy term for "Late Payment Fee."
Fancy term for saying that you are late on a loan … moreFancy term for saying that you are late on a loan or credit card payment.
Sometimes you will hear: "30 days delinquent" or "60 days delinquent", etc. That means that it has been 30 or 60 days, respectively, since your credit card or loan was in "good standing" (i.e. not late).
Sometimes you will hear: "30 days delinquent" or "60 days delinquent", etc. That means that it has been 30 or 60 days, respectively, since your credit card or loan was in "good standing" (i.e. not late).
The penalty for a debtor's misconduct regarding th … moreThe penalty for a debtor's misconduct regarding the bankruptcy case or its creditors. Any debts that are denied discharge cannot be discharged in any subsequent bankruptcy case.
Some banks allow a limited amount of cash to be de … moreSome banks allow a limited amount of cash to be deposited in a checking account on a monthly basis. Any deposit above this amount will probably incur a fee.
Direct deposit is the transfer of funds straight i … moreDirect deposit is the transfer of funds straight into an account without the hassle associated with paper checks.
Some checking accounts have a direct deposit requirement. For example, it could be a requirement that you have your full monthly salary paid into your checking account by direct deposit.
Some checking accounts have a direct deposit requirement. For example, it could be a requirement that you have your full monthly salary paid into your checking account by direct deposit.
The means by which many credit card offers are ext … moreThe means by which many credit card offers are extended and accepted. Direct mailings of credit card offers are an invitation to fraud.
The legal elimination of debt, via a bankruptcy ca … moreThe legal elimination of debt, via a bankruptcy case. Once a debt is discharged, it cannot be legally enforced against the debtor.
Debts that can be eliminated in bankruptcy. A disc … moreDebts that can be eliminated in bankruptcy. A discharged debt cannot be legally enforced against a debtor, though any lien securing the debt might remain.
Discount points are a form of prepaid interest tha … moreDiscount points are a form of prepaid interest that can be paid at the time of origination in order to lower the interest rate charged for the duration of a mortgage. One point costs 1% of the loan amount. For example, 1 discount point on a $100,000 mortgage would cost $1,000. Discount points are tax deductible in the year in which they are bought.
In general, buying one discount point will lower the interest rate on a 30-year mortgage by 0.125%, and the longer you plan on having your mortgage, the more sense it makes to buy a discount point.
In order to figure out whether purchasing discount points makes sense in your particular situation, you must determine 1) by exactly how much the discount point(s) will lower your interest rate; and 2) how the cost of purchasing the discount point(s) compares to the interest you will save with the lower rate over the amount of time you expect to have the loan in question.
Sometimes lenders also charge "origination points" to cover part of the cost of making a loan.
In general, buying one discount point will lower the interest rate on a 30-year mortgage by 0.125%, and the longer you plan on having your mortgage, the more sense it makes to buy a discount point.
In order to figure out whether purchasing discount points makes sense in your particular situation, you must determine 1) by exactly how much the discount point(s) will lower your interest rate; and 2) how the cost of purchasing the discount point(s) compares to the interest you will save with the lower rate over the amount of time you expect to have the loan in question.
Sometimes lenders also charge "origination points" to cover part of the cost of making a loan.
A type of credit card from one of the four major c … moreA type of credit card from one of the four major credit networks. Discover cards are most famous for their cash-back bonus.
The termination of a bankruptcy case without eithe … moreThe termination of a bankruptcy case without either discharge or denial of discharge. After dismissal, the debtor and creditor(s) have the same rights they had before the bankruptcy case was filed.
An argument between a credit card company and an a … moreAn argument between a credit card company and an account holder. Credit and charge card bills are governed, in the United States, by the Fair Credit Billing Act, which is included in the Truth in Lending Act (see Truth in Lending Act). If you think your bill is wrong, write to your card issuer at the address listed on your statement. You must write no later than 60 days after receiving the first statement where the error appeared. The card issuer must acknowledge your letter within 30 days, and correct the error or explain why it thinks the statement was correct, within two billing cycles (but in no event later than 90 days) after receipt of your letter. You do not have to pay the amount in question while it is being investigated, but you must pay the rest of your bill.
A portion of a company's earnings that is distribu … moreA portion of a company's earnings that is distributed to its shareholders at the discretion of the board of directors. Dividends may be paid in the form of cash, stock, or property and are typically paid on a quarterly basis.
A will is a written document expressing a deceased … moreA will is a written document expressing a deceased person’s wishes related to naming guardians for minors and bequeathing their assets such as real estate, money, valuables, etc. It becomes active only after one’s death. A will need to go through court before it can be distributed to your loved ones.
A trust is a legal arrangement where you, a grantor, designate a trustee who holds legal possession of any assets or property that are included in the trust. Upon the grantor’s death, the assets and properties will flow to the beneficiary without having to go through the court system.
A trust is a legal arrangement where you, a grantor, designate a trustee who holds legal possession of any assets or property that are included in the trust. Upon the grantor’s death, the assets and properties will flow to the beneficiary without having to go through the court system.
Medicaid is a public health insurance program in t … moreMedicaid is a public health insurance program in the U.S. that provides health care coverage to low-income families and individuals. You can find more information on the Medicaid website.
Medicare is a national healthcare program funded by the U.S. government. It provides subsidized healthcare services for anyone 65 or older and people with certain diseases. You can find more information on the Social Security website.
Medicare is a national healthcare program funded by the U.S. government. It provides subsidized healthcare services for anyone 65 or older and people with certain diseases. You can find more information on the Social Security website.
Medicaid is a public health insurance program in t … moreMedicaid is a public health insurance program in the U.S. that provides health care coverage to low-income families and individuals. You can find more information on the Medicaid website.
Medicare is a national healthcare program funded b … moreMedicare is a national healthcare program funded by the U.S. government. It provides subsidized healthcare services for anyone 65 or older and people with certain diseases. You can find more information on the Social Security website.
A fee that might be charged by your credit company … moreA fee that might be charged by your credit company in exchange for providing you with copies of documents that relate to your account.
A fee that might be charged by your credit company … moreA fee that might be charged by your credit company in exchange for providing you with copies of documents that relate to your account.
A dependent is a qualifying relative who relies on … moreA dependent is a qualifying relative who relies on you for financial support. It could include your children, spouse, parents, or any other family member.
The bankruptcy amendments of 2005 introduced this … moreThe bankruptcy amendments of 2005 introduced this term to refer to debts incurred from alimony or child/spouse support payments.
This is a fee that you might get charged whenever … moreThis is a fee that you might get charged whenever you have not used your card for any transactions over an extended period of time (e.g. 90 days).
This fee is usually a monthly fee and is in addition to a standard monthly fee that a card might have.
This fee is usually a monthly fee and is in addition to a standard monthly fee that a card might have.
Double-cycle billing describes the credit card com … moreDouble-cycle billing describes the credit card company practice of determining monthly finance charges by looking at your average balance over the last two billing cycles (i.e. 60 days) instead of the more common practice of considering the average balance of the current billing cycle (i.e. 30 days). This often results in consumers paying more in interest.
Example:
The formula used to calculate Finance Charges (FC) is:
FC= (Average Daily Balance * APR * Days in Billing Cycle) / Days in Year
Therefore, if your Average Daily Balance was $600 one month and $200 the next and your APR was 10%, your finance charge under a double-cycle billing system would be $3.28 ($400 * 10% * 30 /365). Under a single-cycle billing system, the Finance Charge would be roughly half that, $1.64 ($200 * 10% *30 /365).
Example:
The formula used to calculate Finance Charges (FC) is:
FC= (Average Daily Balance * APR * Days in Billing Cycle) / Days in Year
Therefore, if your Average Daily Balance was $600 one month and $200 the next and your APR was 10%, your finance charge under a double-cycle billing system would be $3.28 ($400 * 10% * 30 /365). Under a single-cycle billing system, the Finance Charge would be roughly half that, $1.64 ($200 * 10% *30 /365).
The amount you pay up front in "cash" when making … moreThe amount you pay up front in "cash" when making a significant purchase that will necessitate you taking out a loan in order to finance the rest of the transaction and pay off the remainder of the sale price over time.
The loan amount and terms you get approved for largely depend on your credit standing and income. The more responsible you've proven to be in handling past financial obligations and the more financially secure you are at the moment, the less of a perceived risk you will be to lenders and the better your interest rate and other key terms will be. Similarly, making a larger down payment and therefore relying on a loan to cover less of the purchase price will lessen a lender's level of concern since you're more invested in not defaulting on your loan and will too manifest itself in more advantageous loan terms.
The loan amount and terms you get approved for largely depend on your credit standing and income. The more responsible you've proven to be in handling past financial obligations and the more financially secure you are at the moment, the less of a perceived risk you will be to lenders and the better your interest rate and other key terms will be. Similarly, making a larger down payment and therefore relying on a loan to cover less of the purchase price will lessen a lender's level of concern since you're more invested in not defaulting on your loan and will too manifest itself in more advantageous loan terms.
The Down Payment Percentage is the ratio of a loan … moreThe Down Payment Percentage is the ratio of a loan's down payment amount to its total value.
For example, if the value of an item you want to buy is $10,000 and you need to borrow $8,000, then that means that you are using a down payment of $2,000, or 20%.
The minimum down payment percentage reflects the lowest down payment percentage required to get the loan rates displayed. Generally the higher the down payment percentage, the better the rates.
For example, if the value of an item you want to buy is $10,000 and you need to borrow $8,000, then that means that you are using a down payment of $2,000, or 20%.
The minimum down payment percentage reflects the lowest down payment percentage required to get the loan rates displayed. Generally the higher the down payment percentage, the better the rates.
The calendar date that your payment is due in-hand … moreThe calendar date that your payment is due in-hand to your credit card company or loan company.
This is the conversion that happens when an overse … moreThis is the conversion that happens when an overseas merchant converts your credit card transaction from the local currency into U.S. dollars.