Credit Card Dictionary

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A pre-paid debit card purchased as a gift. Retailers issue gift cards to be used only in their stores. Major credit cards also issue gift cards, which can be used wherever those cards are accepted.

If the credit card user does not carry a balance, the grace period is the interest-free time a lender allows between the transaction date and the billing date. The standard grace period is usually between 20 and 30 days. If there is no grace period, finance charges will accrue the moment a purchase is made with the credit card. People who carry a balance on their credit cards have no grace period.

This is all the money, goods and property you receive during the year before you reduce it by using adjustments, deductions or exemptions. People who use the barter system have to include the value of whatever they''ve received in exchanged for services as part of their gross income.

Someone with expertise in computer systems and how to enter them in an unauthorized fashion. Hackers may be simply curious or malicious in intent.

An item on a person's credit report that indicates that someone has asked for a copy of the individual's report. Hard inquiries are requests that result from a person applying for credit, such as a mortgage, a car loan, a credit card or a rental application. They are included in the formula for determining a person's credit score.

The total income of all members of a household. An important yardstick used by lenders evaluating applications for joint credit.

A bank that is locally owned and operated, and not associated with a bank holding company. Also referred to as a community bank.

A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable rate loans such as credit card debt. Some of the most common indices are: the one-year Treasury Constant Maturity Yield; the Federal Home Loan Bank (FHLB) 11th District Cost of Funds; prime rate as listed in the Wall Street Journal.

The sum of the published index plus the margin. For example, if the index is 9 percent and the margin 2.75 percent, the indexed rate is 11.75 percent.

A purchase agreement in which the buyer makes a series of payments.

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