Ready For A-Z

Car Jargon busters funding is important to understand what the fund companies to speak - so you maximize your money.

We are working with experts of the money to this essential guide to finance jargon.

Now compare loans.

AER
Equivalent per year - the best way to savings and checking accounts to compare. AER is how they calculate the interest paid to you. It shows the interest you earn your money, if paid once a year and built each year.

April
Annual Percentage Rate - an annual debt interest costs and fees that often. Lenders are legally required to disclose the April The rate is calculated in a standard, while the average interest rate was constructed over the entire duration of the loan, borrowers can compare loans. For example, in mortgages, the interest on a mortgage when taking into account interest, mortgage insurance and closing costs, including payments of a number of points at the closing ceremony.

Overdraft
This is the agreed limit where a person can not exceed the balance of the account.

Credit
To borrow money and promised an unspecified later date, usually with a form of premium (interest) on the original amount.

Creditors
The person or organization that you owe money.

Credit Cards
There are several credit cards in the UK than people, so you probably, I had one! See credit. Paying for things on a credit card, borrow money and promised to repay it with interest. The sooner you pay the interest, unless you initiate. Credit cards come with a mandatory interest-free period of approximately 50 days.

Credit Sales
This means that you have to finance the transaction with a loan repayable over a longer period have acquired. In most cases it is a form of seller financing. Washing machines and televisions are often sold. The retailer will provide you with a financial partner. They have the goods immediately, which means they can not remove from you if you will be too late.

Credit scoring
The rating system used by lenders to work when you are at high risk to borrow money. Normally you will consider your credit rating you pay your bills in time, the number and type of account you have, the judgments of the courts and any outstanding debts.

Conditional sales
Another name for a lease-purchase agreement.

Debtor
- If you have a credit card, loan or mortgage. In short, this means that you owe someone money.

Default
If your "default" for a loan or debt, you can pay your repayments as agreed. This can often lead to cash penalties.

Depreciation
The dictionary would tell you that the decline in value of an asset "capital". In reality, the cost of ownership and use something - for example, reduces the value of a car, the longer you own and use.

Debits
A periodic payment (usually an invoice or payment) from a bank or building society, an organization - but only with permission of the account holder.

Fixed rates
A contract which you agreed a pay rate for a limited time. The most commonly used with a mortgage, homeowners can have peace of mind knowing that their repayments to be independent, that the Bank of England base rate. Remember, when the contract expires, you are often at a higher variable rate.

GER
Guaranteed value determination - as a "balloon payment" - this is the last lump payment to pay you for your car based on the expected depreciation, as you know is buying a RPP.

HP
Hire purchase - a new way to buy a car, often used to buy white goods like refrigerators and freezers. You agree to pay in installments, but for yourself what you buy the last installment is paid. Until then, technically, the company that you bought her property.

Lease
A record of recruiting practices. According to the law on consumer loans of all leases must be addressed in writing - and they have specific information in specific ways. Do not settle for anything less than a formal lease, if you rent a car.

In Store Finance
These offers can help pay for expensive purchases such as furniture or major appliances over a period of time. The sellers often offer zero percent interest for a certain period and in some cases, you can delay the start of the money back to pay for one years.

Interest
There are two broad phrase "interests" of the finances:
1. A tax on the repayment of borrowed money (credit, loans, etc.), often as a percentage of the total amount you can borrow expressed.
2. A return on the investment - for example, banks pay you interest on your savings.

Ready
Borrow money, usually in advance with the terms of repayment, for a limited time.

Usurers
Too avoid. Sharks loans to borrow money at your home, but an exorbitant interest rates. They are totally unregulated and there are ways things go wrong, unless you pay your debts.

MGFV
Final Price Guaranteed Minimum Values - The MGFV is what your car at a PCP contract ends, as long as you are not exceeded mileage limits of the party. If all goes well, the amount you pay to buy the car at the end of the contract.

PCH
Personal Contract Hire - a way to get a car for a long time to rent on a fixed price. The bit personal "means that only individuals can register as a company. You agree with a monthly rent by various conditions, such as total miles traveled, vehicle maintenance and repair.

CFP
Personal contract purchase - the process whereby a vehicle is rented for a specified period at a fixed monthly cost, then at the end of the contract you the option to purchase or send it with nothing to pay.

PPI
Payment Protection Insurance - insurance, if you can no payments for loans, mortgages and credit cards to make, because you can not work, for example if you lose your job through no fault of the hand or sick pay. Can be expensive, and there is some criticism.

Secured Loan
Borrow money and to ensure that all to pay with interest by offering an asset (usually home) against the loan. If you can not repay the money, would you have taken possession of your home. You can usually more loans with a secured loan than an unsecured loan.

Standing Order
Another way to perform periodic payments. You organize your bank to send a certain amount from your bank account to another electronically. Often used to pay the rent or the repayment of a loan.

Ranger Card
A type of credit only to particular stores. Save often come with a discount or incentive for customers to use. But beware - they often come with a very high rate.

Subprime rate
That are outside the normal category for a lender to calculate the cost of a loan, often called "subprime". They can unemployed, or a self-rating after the bills or not pay the debt to be repaid in the past low.

Illegal overdraft
A negative balance, without authorization from your bank. For more than balanced by too much you will pay a fee.

Unsecured Loans
Borrowing money - but without any guarantee against the return. Typically, the amount you can borrow is the loan is then secured.

Variable rate
The interest to be up or down based on the Bank of England. You decide whether we should pay more or less to borrow money from lenders and a corresponding increase or decrease. If you have a mortgage, a variable mortgage, the Bank of England base rate and keeping your repayments or fall in tandem.

Now compare loans.