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All terms starting with "U"
The significant difficulty or expense on a debtor … moreThe significant difficulty or expense on a debtor and his or her dependents should the debtor continue to repay his or her student loans. A debtor must prove the likelihood of undue hardship in court, under the three-part Brunner Test, in order to discharge his or her student loans in bankruptcy.
Insurance to cover your expenses after an accident … moreInsurance to cover your expenses after an accident caused by a driver who either has no insurance or insufficient insurance to cover all of your damages.
This coverage is required in about half of the states. Learn more about uninsured/underinsured motorist insurance.
This coverage is required in about half of the states. Learn more about uninsured/underinsured motorist insurance.
Refers to the practice of considering someone in d … moreRefers to the practice of considering someone in default on a loan or credit card due to late payments or defaults on an unrelated credit card, loan or bill.
Example:
Imagine you have a credit card and a mortgage. If your credit card company practiced universal default and you missed a payment on your mortgage, then the interest rate on your credit card would automatically increase to the Penalty/Default APR even though, for the purposes of this example, you have not missed a payment on the card.
Example:
Imagine you have a credit card and a mortgage. If your credit card company practiced universal default and you missed a payment on your mortgage, then the interest rate on your credit card would automatically increase to the Penalty/Default APR even though, for the purposes of this example, you have not missed a payment on the card.
A form of permanent life insurance which allocates … moreA form of permanent life insurance which allocates a portion of your premium to a tax-deferred savings account.
Universal life insurance affords policyholders a measure of flexibility in that they can choose their investments, decide how much to invest (a minimum payment is always required to fund the death benefit), and temporarily forgo paying premiums if the cash value of their associated savings account can make up the difference. In addition, policyholders can borrow money from the cash account portion in order to supplement retirement income, for example. However, it's often difficult to determine the rate of return you're getting from the savings account side of a universal life insurance policy, so it's generally a good idea to get a term life insurance policy and separately invest the money you therefore save on premiums.
Universal life insurance affords policyholders a measure of flexibility in that they can choose their investments, decide how much to invest (a minimum payment is always required to fund the death benefit), and temporarily forgo paying premiums if the cash value of their associated savings account can make up the difference. In addition, policyholders can borrow money from the cash account portion in order to supplement retirement income, for example. However, it's often difficult to determine the rate of return you're getting from the savings account side of a universal life insurance policy, so it's generally a good idea to get a term life insurance policy and separately invest the money you therefore save on premiums.
A credit card granted without a deposit or collate … moreA credit card granted without a deposit or collateral.
Debt that has no collateral as its security. Most … moreDebt that has no collateral as its security. Most consumer debts are unsecured.
Credit spent is subtracted from your credit limit … moreCredit spent is subtracted from your credit limit to determine your unused credit.
Purchase loans for used cars typically charge high … morePurchase loans for used cars typically charge higher interest rates and have shorter terms than those for new cars. This speaks directly to the inherent differences between new and used cars. New cars are effective collateral given that they will still hold a great deal of value if a buyer defaults on his loan after a few months or even years. The lender can therefore simply sell the vehicle to recoup amounts owed. In addition to not being worth very much to begin with, used cars depreciate in value very quickly. Lenders therefore must mitigate risk in other ways.