Business and Personal Finance Dictionary

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• CREDIT CARD RECEIVABLES
  
  Consumers use credit cards to purchase goods and services, and they may also be able to borrow under so-called "cash advance" lines of credit available on many credit cards. The receivables included in a securitization may consist of both principal and interest receivables created under these revolving credit card accounts, and are generally unsecured. Borrowers must make minimum monthly payments on their accounts, and both the principal and interest components of these payments are pledged as collateral to the securitization transaction. Credit Card Receivables transactions typically allow the substitution of new loans for repaid loans, and therefore do not amortise as borrowers repay their loans. Credit Card Receivables securitizations typically have scheduled maturties of three to seven years, and are repayable in a single "bullet" installment at maturity.
  
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