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You can use our glossary
to find the definitions of many terms you will come
across when arranging a secured homeowner loan
Click on a letter A
to Z for terms beginning with that letter
P
Payment protection insurance
Most credit card companies will give
you the opportunity to pay a premium based on your outstanding
monthly balance to cover you in the event off you becoming
unable to make their monthly payments due to accident,
illness, disability or unemployment. Often, these payment
protection policies can be poor value when compared
with income protection insurance, or health insurance
policies, which will cover you for a much wider range
of financial payments, including your salary.
Periodic rate
See daily/monthly periodic rate
Prime rate
the interest rate a bank charges to
its best or "prime" customers
Q
R
S
Secured card
a credit card for which the cardholder
has made a security deposit, frequently in the form
a savings deposit, to ensure payment of the outstanding
balance should the cardholder default. Designed for
those who lack credit, or have damaged credit.
Standing order
this is an agreement set up between
you and your bank which authorises the bank to make
regular payments from your account to the account of
a third party. When you set up a standing order, you
tell the bank how much money to take out of your account
and on what dates. The agreement, which does not cost
you anything, will continue until a pre-determined date
or until you ask the bank to stop making the payments.
T
Teaser rate
See introductory rate
Transaction date
The date that goods or services were
purchased or the date the cash advance was made.
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