define explain c

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
C

Capitalising/Capitalised interest – Interest is accrued and added to the overall amount owing instead of being repaid on a regular basis.

Car Finance – see Consumer loan, Chattel Mortgage, Commercial Hire Purchase Agreement, Novated Lease.

Cash basis – A method in accounting whereby transactions are recorded only after payment or receipt has occurred.

Chattel mortgage – A loan designed to aid vehicle purchase, where the charge is derived from a goods mortgage on the vehicle in question. Therefore, the vehicle title is possessed by the borrower, who provides the goods mortgage.

Chattels – Personal property. Real chattels refers to buildings and fixtures, while personal chattels covers clothing and furnishings.

Co-borrower - A co-borrower is responsible for the repayment of the entire debt along with the borrower and is subject to identical financial and legal ramifications to the borrower in the event of missed payments or a default.

Commercial Hire Purchase (CHP)- A Commercial Hire Purchase is a contract between the customer and their finance company. In this type of lease, the finance company purchases the vehicle in question, and gives, or 'hires', the rights to its possession and use to the customer in exchange for regular payments.

Comparison rate – An aid to help identify the real cost of a loan contract. Accounts for interest rate, set-up costs and other associated fees.

Compound interest – Interest that continually incorporates accumulated interest with the principal amount.

Consumer – An individual who purchases or makes use of a good or service.

Consumer Credit Code – The law regulating loan transactions in Australia involving consumers. All lenders are obliged to make the borrower aware of their rights and obligations for a given agreement. Those credit transactions that are made primarily for business or investment purposes are not covered by the Code.

Contract – An agreement between two or more parties recognised and enforceable by the law.

Credit – Money that is lent to a borrowed in exchange for a promise of future repayment. It is usually the case that interest is paid on the money that is borrowed, in addition to other fees and charges.

Credit file – Credit history information stored by a credit agency. Past failures to make repayments may show up in the file as a 'default', which may prove an impediment to borrowing from certain lenders.

Credit history – see above.

Credit rating – Not a specific rating as such, but rather the contents of a credit file, which details an individual's credit history. A healthy credit rating (ie. a good prior record) is an important factor in securing finance.

Credit report – A report detailing an individual's credit history that is issued by a licensed reporting agency. Lenders must obtain the permission of potential borrowers in order to acquire a credit report.