371998
| Question | Answer |
| APR | Annual percentage rate - the cost of borrowing over one year, including the interst charged and any fees |
| ATM | Automated teller machine also known as a cash machine |
| Bank Rate | The interest rate the Bank Of England uses when it lends money to other banks. This is then used to set interest rates on the loans and savings made to the public |
| Basic bank account | A current account but does not have a debit card, a cheque book or overdraft facility. Used for direct debits or withdrawing cash |
| Balance Transfer | Moving the balance due on one card to another card from a different provider |
| Cash Verification Value (CVV) | 3 numbers on the back of the credit or debit card used as a security measure |
| Cashback card | you get back a % of the vakue of the transactions you make with the card |
| Charge card | A credit card that must be repaid in full every month |
| Cheque | A written instruction to the provider (e.g the bank or building society) to pay a specified amount to a specified person or organisation. |
| Consumer credit | Another term for borrowing. |
| Cost of borrowing | The total amount a person will be charged including interest and fees for personal loans and credit cards. It must be quoted as the Annual Percentage Rate (APR) |
| Credit Agreement | The formal agreement setting out the amount borrowed, the interest rate, the repayments schedule |
| Credit Card | A card that allows you to make purchases or withdraw cash. The difference is that it is not your money but you have to repay it back either in whole or in part at the end of each month. you are charged interest on any balance outstanding at the end of the month and there is a limit to how much you can spend in total. The interest you are charged is a lot more than on an ordinary personal loan. |
| Credit History | A record of money borrowed and repaid by a person. The information is held by credit reference agencies. This will be checked when you are looking for a new loan |
| Credit union | A mutual organisation (owned by its members) that provides a range of financial products (savings accounts and loans to members). Members of a credit union must have something in common e.g work for the same company or live in the same area |
| Current account | A bank or building society account where people can store their money in the form of an electronic balance and withdraw it to make payments |
| Debit card | Can be used to withdraw cash, to make face to face transactions and to make payments online or over the phone |
| Direct Credit | An electronic payment into an account e.g a salary or benefit payment |
| Direct Debit | An electronic payment out of an account. The amount and frequency of a Direct Debit can vary (unlike a standing order) |
| EAR | Equivalent annual rate - the cost of borrowing using an overdraft. The EAR includes only the interest rate as the fees are listed seperately |
| Interest | Money either paid to an account holder (savings) or by an account holder (on loans). The provider decides on the amount of interest they will pay or charge you. |
| Interest Rate | The amount, expressed as a percentage, that a financial servicesn provider or pays to a saver, or charges a borrower when it lends money. |
| Mortgage | A loan taken out over a property, usually over a long term such as 25 years |
| Overdraft | A facility that allows an account holder to withdraw more money than they actually have in their account |
| payday loan | A loan designed to be taken out for only a very short period which charges a very high APR |
| Personal loan | A product that allows someone to borrow a fixed amount over a fixed period at a fixed amount of interest. |
| Payment allocation | The order in which a card provider uses money paid into an account to pay off the amount outstanding |
| Standing Order | An electronic payment out of an account. Standing orders are used to make regular payments of the same amounts |
| Store card | A card issued by a retailer that the holder can use to make purchases within the store or group of stores. Just like a credit card you pay it off at a later date and you are charged interest |
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