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Houston Mortgage > Glossary >
Credit Repair > C 1-10
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Card holder agreement
The written statement that gives the terms and conditions of a credit card account. The cardholder agreement is required by Federal Reserve regulations. It must include the Annual Percentage Rate, the monthly minimum payment formula, annual fee, if applicable, and the cardholder''s rights in billing disputes. Changes in the cardholder agreement may be made, with written advance notice, at any time by the issuer. Rules for imposing changes vary from state to state, but the rules that apply are those of the home state of the issuing bank, not the home state of the cardholder. See national issuers.
Cash advance fee
A charge by the bank for using credit cards to obtain cash. This fee can be stated in terms of a flat per-transaction fee or a percentage of the amount of the cash advance. For example, the fee may be expressed as follows: "2%/$10". This means that the cash advance fee will be the greater of 2% of the cash advance amount or $10. The banks may limit the amount that can be charged to a specific dollar amount. Depending on the bank issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to your bill as of the day you received the advance. The cost of a cash advance is also higher because there generally is no grace period. Interest accrues from the moment the money is withdrawn.
Cash advance rate
When banks allow credit cardholders to borrow cash, they often charge a higher rate of interest than they do for purchases. Usually, banks also charge a fee for each cash advance, and the interest accrues from the moment the money is withdrawn.
Cash cards
Cash cards, often called gift cards, are similar to prepaid phone cards and contain a set amount of value, which can be read by a special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The cards are like cash -- they have no built-in security, so if lost or stolen, they can be used by anyone.
Cash collateral
The proceeds of cash collected from the sale of liquid assets while in bankruptcy.
Cash flow
The money an investment produces after subtracting cash expenses from income.
Caveat
A warning or caution.
Caveat emptor
Latin for "let the buyer beware." It means that the buyer of a property or item buys it at his or her risk.
CD line of credit
A depositor can take out a loan for up to 100 percent of the CD amount, secured by the CD itself. Because the loan is secured by the cash in the account, the interest rate to the borrower is low -- typically the annual percentage rate of the CD plus some index the bank uses. The loan is paid back during the term of the CD. If the customer defaults on the loan, the bank can seize the money invested in the CD. If the loan is not repaid by the time the CD expires, the depositor can renew the CD.
Certificate of title
A statement provided by a title company or attorney stating that the title to the real estate or vehicle is legally held by the current owner.
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Houston Home Mortgage