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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.
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%
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.