Bankrate's financial glossary
Did you run across an unfamiliar term when applying for a mortgage, credit card
or auto loan? Find the meaning here, along with definitions of other financial words
and phrases, in Bankrate.com's financial glossary.
The process by which a lender decides whether to lend money, based on the value of the property, the borrower's credit history and any other relevant factors.
Options that allow buyers of newly built houses to select higher-quality floor coverings, cabinets, windows and other amenities for more money.
Illegal, excessive interest.
Uniform Gift to Minors
A trust often used to set aside money for a child’s college education. In many cases, a parent will give up to $10,000 per year per child to take advantage of a tax exemption on gifts.
The costs that must be paid at the time of signing a car lease agreement. These can include the first month's payment, a refundable security deposit, a capitalized cost reduction or down payment, taxes, registration and other fees.
A position that consumers find themselves in when the outstanding balance of a loan is higher than the current fair market value of the property purchased with the loan. In automobiles, it is most common in the early years of a lease or loan, when the car is depreciating rapidly but the balance owed remains very high. Also see depreciation.
Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
Data about where an individual goes and how much time is spent at a specific site. This is particularly useful for advertisers, whose payments are based on how many times the Web page containing their advertisement is viewed. Also, online services such as America Online must track a user's sign-on and sign-off times for billing purposes.