This is a person who either applies for, or receives a loan. A borrower must have the intent and ability to repay the loan in full, plus any interest

Bouncing a Cheque

The process by which a bank refuses to pay a cheque because there isn't enough money in the customer's account


A financial plan drawn up for an individual, a family, a business or a government. It is usually for a period of a month or a year, but can be for longer


The total of a person's or a business's assets, less their liabilities.

Cash Advances

A cash advance is a service provided by most credit card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit or some percentage of it.


A written order instructing a bank to pay a specific amount to a named person. A cheque must be dated and signed

Cleared Funds

When you pay an amount into your bank, it may take a few days to be 'cleared'. You cannot use the money until it has gone through this process

Cost of Loan

The total cost of a loan - includes interest plus all charges, fees and so on.


Money to buy goods or services that the lender will pay back in the future.

Credit Card

A card used to borrow money or to pay for purchases. The card allows the cardholder credit which they can repay monthly

Credit History

A record of credit someone has had in the past

Credit Limit

The maximum amount allowed to be used on a credit card

Credit Rating

An assessment of someone's ability to pay debts based on their history and current assets. It is sometimes expressed as a number called a credit score


A person or business money is owed to

Credit Score

The information on your credit report and the information you give when you fill in the application will help boost your credit score

Credit Search

A credit search is a check performed by a credit reference agency to confirm how well you manage your money We use this information to assess your application for a loan and confirm your identity

Current Account

A bank account which allows a customer to deposit money and withdraw money, by cash, cheque, standing order or direct debit

CV2 Number

The CV2 number (security number) consists of the last three digits printed on the signature strip on the reverse of major credit and debit cards


Any transaction that reduces the balance in a bank account


Money owed to another person or business. A person who owes money to others is known as a debtor

Debit Card

Card attached to your bank account, which takes payment directly from the cash in your account rather than on credit


This is failure to meet the financial obligations as agreed. People who do not make payments on a loan have 'defaulted' on that agreement


To put money into a bank account - can be done by paying in cash or cheques over the counter, or by direct deposit, for example, from an employer
A deposit can also be an amount which is laid down on an item to demonstrate the intention to fully purchase the item later - for example the deposit on a house Financial Planning
The process of setting financial goals, and producing plans (for example, budgets) to achieve those goals

Fixed Interest Rate

This is a rate that stays the same for the life of the loan.

Gift Card

Also know as a gift voucher or credit note, that can be reused to purchase goods and services as a method of payment

Gross Income

The full amount of money earned (that is, before any deductions such as tax)


Amount of money received or earned over a period of time

Income Tax

A tax on personal income. Usually deducted directly from wage


Money that you earn on money you keep in a bank account, or money you pay for borrowing money

Interest Rate

The amount of interest paid or charged (given as a percentage)


An institution or individual who loans a borrower money. Liabilities


An agreement between a lender and a borrower. The borrower agrees to repay the money borrowed over a period of time - with interest & other charges.

Loan Agreement

A Loan Agreement is a binding contract which regulates the terms and conditions of the loan and is a legal document between the creditor (the company lending) and the debtor (the customer). It shows the key information of the amount of credit you are taking, the duration of the agreement, the total amount payable and the APR

Method of Payment (MOP)

Method of Payment is the way a merchant chooses to accept payment for products or services

Minimum Balance

The smallest amount of money you can have in a bank account.

Minimum Payment

The smallest amount you can pay towards money you owe on a credit card. It is stated on your monthly statement.

Net Income

The amount of income after all deductions (for example, tax). Also called 'take-home pay'

Online Banking

A service which allows you to operate a bank account over the internet


When you borrow money from a lender and have not yet made a payment, this is the outstanding balance Overdraft An arrangement with a bank which allows customers to withdraw more funds from a current account than they have in the account. It is a form of lending

Over The Limit Fee

This is the fee charged when a consumer exceeds the credit limit on their credit card

Eborrow Loan

A short-term loan which you repay on your next repayment schedule.

Monthly Interest Rate

This is the Annual Percentage Rate (APR) divided by 12

Personal Identification Number (PIN)

Numbers which allow you to access information or money, from ATMs for example. You should never tell anyone else your PIN number

Processing Fees

The fees that are charged with the process of credit card transactions and loans.


A repayment of a sum of money given for a previous purchase. With a card purchase the refund will made to the same card used for the original transaction

Secured Loan and Credit

A loan with property or other assets as security

Short Term Loans

A loan scheduled to be repaid in less than a year

Telephone Banking

Carrying out transactions on your bank account over the phone


The period over which a loan is scheduled to be repaid or an investment runs


This refers to the movement of money. For example, when you pay money into or take money out of a bank account. It can also refer to a purchase in the case of a transaction with a shop

Transaction Fee

The amount a customer would have to pay per transaction for a credit card or loan. Some providers charge for a cash advance, if a late payment is made, or if the credit limit is exceeded.

Unpaid Balance

The amount still owing on an account

Unsecured Loan and Credit

A loan not backed up by collateral or guarantee of any sort


Services such as gas, electricity and phone


Taking money out of your bank account