APR Annual Percentage Rate – is the yearly cost of borrowing money on a loan or credit card = compound interest rate X the number of payments in a year.
Asset An item of value a person owns.
Balance Transfer Is the transfer of money owed on a credit card account to another credit card.
Charge-Off Is an uncollectible debt determined by the lender.
Co-signer A person that signs a loan with: ‘a friend, family member, spouse, etc.’ to a lender. The co-signer accepts legal responsibility to repay the loan if the ‘friend, family member, spouse, etc.’ does not pay or defaults.
Compound Interest Is the interest you either earn or pay on interest. It is interest that is added to a loan or deposit.
Credit Inquiry A request from an authorized business to check your credit
Credit Reference A recommendation as a good credit applicant.
Debt Money owed.
Debt Balance Total amount owed on a specific day
Default Failure to pay a debt
Delinquency Late payment
Finance Charge The total cost of using credit or the total cost of borrowing. Finance charges can include: interest, fees, financial transaction charges and insurance.
Interest The cost for borrowed money.
Interest Rate The percentage rate you pay on borrowed money.
Loan Money borrowed that must be paid back generally in a specific amount of time.
Utilization Rate Total balance due/total available credit = ratio. The lower your ratio the better your credit score.