Here are some help terms to know if you are doing anything from opening a bank account, purchasing a credit card or even buying a home.

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Acceleration clause - Allows lenders to require the entire repayment of a loan when the loan is in default.

Account - A credit agreement between a consumer and a credit extending agency. An account maybe a closed-end agreement, such as an installment loan, or an open-ended agreement, such as a department store account (revolving).

Actuarial method - Interest on the outstanding balance. Also simple interest financing.

Adjusted balance - A method of calculating an open-end finance charge (such as on a charge account) by subtracting payments made during the billing period and applying the interest rate to the balance.

Adverse action notice - A lender's notice to refuse, end or reduce credit. Under the Fair Credit Billing Act, creditors must disclose the reason.

Amount - The original loan amount for installment accounts, credit limit, or high balance for revolving accounts.

Annual Percentage Rate (APR) - The rate of interest charged by a creditor on an annual basis. The Federal Truth in Lending Act of 1968 requires lenders to calculate the cost of credit as an annual percentage and disclose the APR in large type in loan application documents. The APR disclosure helps borrowers compare the cost of alternative loans. (To determine monthly interest, divide the APR by 12; for example, if the APR is 18% of an unpaid balance of $1,000, then the monthly interest is 1.5%, or $15. No interest is added during a grace period).

Available credit - Amount in dollars of a person's unused credit available (sometimes called open to buy). In bankcards, it is the difference between the average outstanding balance and the cardholder's pre-approved credit limit.

Average daily balance - A method of computing the figure on which the finance charge or credit card financing will be based. The account balances for each day in the billing period are totaled and divided by the number of days in the period.

Balance to limit - The ratio of original loan amount or high credit limit to the outstanding balance.

Balance - The amount of funds outstanding on an account.

Balloon note financing - Allows a final loan payment substantially larger than regular, periodic payments. See balloon payment.

Balloon payment - A final lump-sum payment that includes remaining unpaid principal. The extra payment extinguishes the debt.

Bank - An establishment for (a) the custody, loan, exchange or issue of money; (b) the extension of credit; and/or (c) facilitating the transmission of funds.

Bankcard - A credit card (issued by a bank, credit union, and/or savings and loans) that is tied to a pre-approved line of credit, or a debit card, drawing funds from the holder's checking or savings account.

Bankruptcy - The legal process by which a consumer or business declares insolvency. By judicial declaration the consumer/business has done anyone of a specific number of Bankruptcy Acts which then by law entitles the estate to be administered under the bankrupt laws for the benefit of the creditors.

Business credit - Extensions of credit primarily for business or commercial (including agricultural) purposes.