ABM - Automated banking machine.

Account level charge - Charges against any account transactions (i.e., withdrawal, deposit, transfer). Charges vary between accounts.

Amortization - When applied to a loan, the period over which the principal and interest are repaid in full.

Annual fee - The administration fee charged each year on a credit card account.

Assets - Your possessions, including property, cash and investments.

Bankrupt - Technically this means being insolvent, or declared by law as unable to pay debts. The result of declaring bankruptcy is that you may be prevented from obtaining credit for a car, credit card, home or a student loan for at least 7 years by financial institutions.

Class A loan - While the student is in full-time studies:
Federal Student Loans: the government pays the interest
For ScotiaLine for Students: the student pays only the interest

Class B loan - A student loan that is due for full repayment (e.g., principal & interest payments) following graduation, or no longer in full-time studies.

Class B date - The time at which a student loan must begin full repayment: 6 months following the end of full-time studies.

Collateral (Assets) - Usually property or investments used to secure a loan.

Consolidation - Combining more than one debt into a single loan.

Co-signer - Person who signs a loan with you and shares responsibility for repayment of the loan.

Credit rating - Created by authorized credit agencies that denote a person's credit history.

Credit Bureau - A clearinghouse for credit information. Credit grantors provide the credit bureau with information on how their credit customers pay their bills and the bureau compiles information as a resource for credit grantors. Customers may review their own credit file at any credit bureau location.

Credit File (Credit Bureau Report) - A record of information about payment history with credit grantors such as stores, banks and credit card companies, and includes information from "public record" (bankruptcies, judgments), which reflect a customer's ability to repay debts. The "credit file" is used by credit grantors for decisions regarding the extension of credit

Daily interest - The interest calculated on a minimum or average daily account balances; usually credited to the account once a month.

Deficit - The result of expenditures being greater than income (the opposite of surplus).

Direct debit - A means of paying for goods and services with a magnetic debit card that authorizes transfer of the funds, via the INTERAC*** Direct Payment network, directly from your account to the merchant's account.

Equity - The value of property beyond what may be owed on the property. Thus, a house may be worth $250,000 with an outstanding mortgage of $100,000, creating equity of $150,000.

Fixed interest rate - An interest rate established at the time a loan is opened and which remains unchanged for the term of the loan.

Floating interest rate - An interest rate that can change during the term of a loan; usually in accordance with the lending institution's prime rate.

GIC - (Guaranteed Investment Certificate) A savings instrument that pays a fixed rate of interest over a specified term.

Guarantor - A person who guarantees to repay a loan in the event that the borrower defaults.

INTERAC Network - A network that links the ABMs of banks and other financial institutions in Canada, giving automated access to bank accounts using other participating banks' ABMs.

Lien - A claim on a person's property as security for an unpaid debt.

Line of credit - A form of loan in which the borrower draws funds as needed, up to a specified maximum.

Mutual fund - A pooled investment fund in which individuals can purchase units.

NSF - Not sufficient funds in account to cover the value of a cheque issued. The service charge for an NSF cheque is high and, worse, writing NSF cheques can damage a credit record.

Payment due date - The date a loan or VISA payment is due.

Prime rate - The interest rate banks charge their best corporate customers.

Principal - The amount of a loan excluding the interest.

RRSP - (Registered Retirement Savings Plan) A government-supported program in which contributions are made to defer the payment of income taxes and to build savings for retirement.

Surplus - What's left over when income is higher than expenditures (the opposite of deficit).

TDSR - (Total Debt Service Ratio) The total of all monthly installment payments (loans, rent, taxes, utility payments, etc.) divided by gross income.

Term - The period of a loan during which the interest rate is fixed. For example, the amortization of a loan might be 25 years (as is typically the case with mortgages), but the term may only be one year. After the term expires, the interest rate will be fixed for another term.