It's much easier to start with good habits than to repair black marks later on.                                                                 



You are invited to the most effective program available to clear mistakes made by creditors.



Once you have obtained excellent credit, it is necessary for you to protect it.                                             

Financial Glossary
Understanding Financial, Credit, & Real Estate Terms


 A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | XYZ  

Par value   —  The full face value of a security.

Payday Loan  —  A transaction in which a short-term cash advance is made to a consumer in exchange for a customer's post-dated check in the amount of the advance plus a fee, or in exchange for a consumer's authorization to debit a transaction account in the amount of the advance plus a fee at a designated future date.

Payments system  —  Collective term for mechanisms (both paper-backed and electronic) for moving funds, payments and money among financial institutions throughout the nation. The Federal Reserve plays a major role in the nation's payments system through distribution of currency and coin, processing of checks, electronic transfer of funds and the operation of automated clearinghouses that transfer funds electronically among depository institutions; various private organizations also perform payments system functions.

Permissible nonbank activities   —  Financial activities closely related to banking that may be engaged in by bank holding companies (BHCs), either directly or through nonbank subsidiaries. For example, a BHC might own finance companies or engage in mortgage banking. The Federal Reserve Board determines which activities are closely related to banking. Before making such activities permissible, the Board must determine that performance of the activities by bank holding companies is in the public interest.

Personal Identification Number PIN  —  A sequence of digits assigned to consumers that are used to identify them when debit cards are used at an ATM, POS terminals or a home device. See also ATM, Credit card, Debit card.

Personal income   —  The dollar value of income received from all sources by individuals.

Personal outlays   —  Consumer purchases of durable goods, nondurable goods and services.

Points  —  In reference to a loan, points consist of a lump sum payment made by the borrower at the outset of the loan period. Generally, each point equals one percent of the loan amount. See also seller's points.

Predatory lending   —  Targeting loans to elderly, low-income and other people to take advantage of their financial status or lack of financial knowledge.

Premium   —  The amount by which the auction price of a bill, note, or bond is higher than its face value.

President  —  One appointed or elected to preside over an organized body of people; the chief officer or a government branch, company or corporation.

Pretax  —  A person's salary before state and federal income taxes are calculated.

Price level  —  The average level of the prices of products and services purchased by consumers.

Prime rate  —  The lowest interest rate on bank loans, offered to preferred borrowers.

Principal   —  The unpaid balance on a loan, not including interest; the amount of money invested.

Private  —  Not available for public use, control, or participation.

Processing  —  To prepare, treat, or convert to some special process.

Producer Price Index (PPI)   —  A measure of the average price level for a fixed basket of capital and consumer goods paid by producers.

Productivity   —  The amount of physical output for each unit of productive input.

Profit  —  The return received on a business undertaking after all operating expenses have been met.

Progressives  —  Farmers and ranchers opposed to big Eastern-based money trusts and conservatives in the government during the late 1800s and early 1900s.

Promissory note  —  A written promise on a financial instrument to repay the money plus interest.

Protect  —  To assure payment of (drafts, or notes for example) by setting aside funds.

Public  —  Connected with or acting on behalf of the people, community, or government rather than private matters or interests.

Purchasing power parity theory   —  The exchange rate between any two currencies adjusts to reflect changes in the price levels within the two countries.

Purpose credit   —  Credit used for the purpose of buying, carrying or trading in securities.