Personal Finance - Credit and Debt Vocabulary

A payment card that allows you to borrow money from a bank to make purchases. The money must be paid back with applicable interest or fees.

• Credit Score

• Debt

• Credit Card

• APR

A record that details a person's credit history

• Credit Score

• APR

• FICO

• Credit Report

This is a fee that is charged when the terms of a loan are not followed.

• Down Payment

• Penalty Fee

• Debt

• Credit

A type of loan used to finance the purchase of real estate or a home.

• Down Payment

• Secured Card

• Equity

• Mortgage

An abbreviation for the interest rate charged on the balance of a credit card.

• FICO

• APR

• CCV

• IBR

A numerical rating of your credit worthiness (how likely you are to pay off your debts). In the US, the most commonly used system is the FICO.

• Credit Report

• Credit Limit

• Credit Score

• Credit History

Something such as money that is owed to a lender.

• Debit

• Debt

• Deposit

• Loan

The cardholder provides the lender with money to hold and they give you a credit limit up to that amount. This card protects the lender in the event that a borrower cannot pay and usually has a lower APR

• Down Payment

• Debt

• Secured Card

• Penalty Fee

The initial amount that is paid when something is bought using credit. They are usually provided at the time of purchase particularly when purchasing larger items, like a house or a car.

• Security deposit

• Down payment

• Credit

• Loan

A type of credit score created by the Fair Isaac Corporation

• FAISC

• FIC

• FICO

• FISC