Credit Card Glossary - I
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- Independent Bank
- A bank that is locally owned and operated, and not associated with a bank holding company. Also referred to as a community bank.
- Index
- A published market-based figure used by creditors to establish a lending rate. The most common indices are: the one-year Treasure Constant Maturity Yield; the Federal Home Loan Bank 11th District Cost of Funds; and the prime rate as listed in the Wall Street Journal.
- Indexed Rate
- Sum of the published index plus the margin. For example, if the index is 10% and the margin is 3.50%, the indexed rate is 13.50%
- Interest
- Money paid for a borrower?s use of money, calculated as a percentage of the money borrowed and paid over a specified time.
- Interest Accrual Rate
- Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
- Interest Rate
- A charge for borrowed money that is generally a percentage of the amount borrowed. It is disclosed as an APR on the credit card form.
- Interest Rate Cap
- A limit on how much a borrower?s percentage rate can increase or decrease at rate adjustment periods and over the life of the loan.
- Interstate Banking
- Bank expansion across state lines through the use of bank holding companies and acquisitions of existing banks.
- Introductory (or Intro) Rate
- The "teaser" low rate charged by a lender for an initial, temporary period to encourage customers to switch cards. After the introductory period is over, the charged rate increases to the indexed rate or the interest rate.
- Issuing Financial Institution
- The financial institution that issues a credit card and bills the customer for purchases made against the card account.
