The yearly borrowing cost, expressed as a percentage rate.

Apr definitiion

A yearly fee charged by some credit card companies for having an account open.

What a person owns, such as cash, stocks, bonds, real estate, and personal property.

Debt taken on for items that a consumer does not need and cannot afford. (See "good debt")

The amount of money in a savings or checking account or the amount owed on an account. (i.e., the amount of money owed on a credit card)

Bankruptcy is a legal process that helps people who can no longer pay their debts by liquidating assets to pay their debts or by creating a repayment plan.

A financial plan that helps you manage your money by allocating your expected income and expenses toward spending and saving options that align with your personal goals.

Ability to repay a loan from your current income; one of three factors in credit scoring.

The value of your personal items, including savings, investments, and property. One of three factors in credit scoring.

A savings tool from a bank or credit union with a fixed maturity date and interest rate.

Refers to trustworthiness; one of three factors in credit scoring (i.e., paying bills on time shows financial responsibility).

A bank account you can deposit and withdraw funds from as needed and use a debit card to make purchases and access cash.

Compound interest means earning interest on both the original investment and any interest earned before, leading to faster earnings growth.

Amount of money a creditor is willing to loan a consumer or business to purchase goods and services, based on trust and the expectation that the money will be repaid as promised with interest. (i.e., credit cards, loans, etc.)

A credit card allows you to borrow money to buy things. That can come with costs (interest and fees) and benefits (rewards, credit-building).

The maximum amount of money a lender will lend a customer. The lender determines the amount based on various factors, such as the customer's credit score, income, and payment history.

A summary of your credit history, including the types of credit accounts you have had, your payment history, and the status of your credit accounts. There are three main nationwide consumer reporting agencies (CRAs) – Equifax, TransUnion, and Experian – each report may contain different account information.

A numerical representation of a person's creditworthiness, calculated by assessing their financial history and behavior, typically using systems like FICO.

Not-for-profit cooperative (owned by its members) that provides savings and checking accounts and other services to its members with low fees.

The percentage of your total credit used from the total credit available to you.

Indicates a responsible attitude toward living up to financial agreements.

A debit card is linked to your bank account and used for cash withdrawals or purchases. The money is deducted from your balance instantly. You can't borrow money with a debit card like a credit card.

The amount of money owed to lenders from borrowing. You can acquire debt in many ways–credit cards, mortgages, personal loans, auto loans, by-now-pay-later loans, etc.

Businesses or individuals that pursue the payment of debts owed.

Taking out one loan to cover a variety of debts, often with the goal of paying a lower interest rate overall.

Default occurs when a borrower cannot meet the debt repayment obligation. Default is the second and more serious stage of nonpayment that follows the stage of delinquency.

Decline in a product's value that starts when a product is purchased (i.e., a car).

Distributing funds among different types of investments to minimize overall risk.

The payment you receive for allowing a financial institution or corporation to use your money.

Money set aside for emergency expenses, recommended to cover six to nine months' worth of living costs.

A mathematical model that assesses a person's reliability in repaying borrowed funds.

A cost related to borrowing money, obtaining credit, or paying off loan obligations.

The ability to comprehend and effectively use various financial skills, including understanding banks and the banking system, financial markets, credit and credit cards, and tax laws.

A plan for managing your finances to maximize your future benefits.

The ability to meet all financial needs, today and over time; feel secure in the financial future; absorb a financial shock; and have the financial freedom to make choices to enjoy life.

Expenses that cost the same amount every time they occur.

On a credit card, the time you have before you start accumulating interest on a balance.

On a credit card, the time you have before you start accumulating interest on a balance.

Buying things without having planned for them beforehand. It can cause you to spend more money than you can afford.

Income can come from employment, investments, or business transactions, and there are two ways to measure it: gross income and net income. Gross income is the total amount earned before expenses, taxes, and other costs are subtracted, while net income is what remains after these deductions.

A retirement account that allows individuals to contribute a limited yearly sum toward retirement on either a pretax (traditional IRA) or after-tax (Roth IRA) basis.

When the cost of goods and services increases gradually over time.

A closed-end loan for a specific product, such as furniture or appliances.

The rate at which a borrower pays interest for borrowing an item or money; or the percentage rate earned on a given investment.

Setting aside money for future income, benefit, or profit to meet long-term goals; using savings to earn a financial return.

A fee for making a payment after its due date.

A lender can be an individual, a business, or a government entity that provides loans.

The total amount of money a person owes, which includes unpaid bills, credit card charges, personal loans, and taxes.

The time you have to pay off a loan.

The smallest amount a person must pay monthly on a credit account.

The distinction between what a person owns and their debts is known as their net worth.

A type of credit that enables individuals to borrow money for purchases without a specific repayment period.

Regularly saving or allocating money as part of a budget for future spending or investing is known as disciplined saving.

Typically means imposing unfair, deceptive, or abusive loan terms on borrowers.

Payment of all or part of a balance before it comes due.

A fee lenders can charge borrowers if they pay off a loan early.

(Lending) The amount of money you originally received from the lender and agreed to pay back on the loan with interest. 

(Investment) The amount of money you contribute with the expectation of receiving income.

The interest that may accrue on an interest-bearing account like a credit card, loan, line of credit, or mortgage.

The chance of experiencing a financial loss.

Refers to the intentional and organized use of different methods to manage the possibility of personal or financial harm caused by uncontrollable risks.

Save income for long-term financial planning. Use savings accounts for emergencies, not frequent transactions.

Savings accounts are interest-bearing deposit accounts for saving money long-term. They are not intended for frequent transactions or withdrawals. Many people use them for emergencies or financial goals.

A credit card that typically requires a cash security deposit. Secured credit cards are often used to build credit history.

Loans in which your property is used as collateral; if you cannot repay the loan, the lender takes your collateral to get their money back.

Kasheesh's proprietary algorithms power Smart Split to help determine an optimal split across your cards. We consider things like available balances on your cards, credit limits, utilization rates, and more to recommend a split that we believe will be best for you.

Taxes are payments required by individuals or organizations to the government. They are fees on income, property, or goods that help fund government programs.

A loan that does not use property as collateral. Lenders may consider these loans more risky than secured loans and charge a higher interest rate. If the loan is not paid back as agreed, the lender can start a debt collection and file negative information on your credit report.

Expenses that may change from week to week or month to month.

Increasing the total value of what one owns, one's tangible assets using strategies to increase savings and personal asset accumulation, thereby promoting individual/family economic well-being and financial security.

The profit from an investment.