Gnomenclature

Account history is part of your credit record that affects your credit score. It includes the number, type, and age of any credit accounts you have. Older accounts help credit scores, while too many newer ones can drag your score down.

Actual cash value is the market value of a vehicle given its age and current condition. This can be especially important for insurance purchases or if you still owe money on an auto loan at the time you plan to sell the vehicle.

An annuity is an investment product designed to provide regular income. Money you pay into an annuity is invested and then paid out gradually over time. They may defer taxes on investment gains until the money is paid out. There are a variety of different annuities which can fit different retirement income needs. Whether or not they are a good deal comes down to comparing the ultimate payout with the amount of money that goes into them.

AP credit or Advanced Placement Credit provides course credits toward a college degree based on successfully completing approved elevated coursework in high school. AP credit can have significant financial value by allowing a student to earn enough credits to graduate from college sooner, just cutting down on the cost of attending school.

APR stands for “annual percentage rate.” It measures the cost of borrowing money as a percentage of the amount borrowed. It includes both interest charges and certain mandatory fees such as closing costs. It is helpful for comparing different loans that may have different combinations of interest and fee charges. However, it is important to check which fees the lender includes in the APR calculation.

Auto lease is a long-term agreement for the use of a vehicle. The term and monthly rate are specified in the lease term. Under certain circumstances, leasing may be more practical than buying a car. However, your payments do not give you any ownership of the vehicle, and it must be surrendered at the end of the lease period (or purchased if desired). There may also be restrictions governing the number of miles you can put on the vehicle and how you can use it during the period of the lease.

An auto loan is a loan specifically for the purchase of a vehicle. This type of loan has monthly payments which include both repayment of part of the amount borrowed and interest. The vehicle is used as collateral for the loan, which means the lender may take possession of it if you fail to make the loan payments.

Automatic enrollment is an employee retirement plan policy that directs a portion of an employee’s earnings to the company retirement plan unless they choose to opt out. It also directs those earnings to a default investment option unless they make another choice. Automatic enrollment is designed to get more employees saving for retirement unless they actively choose not to participate.