Credit Terms

Front

What is a credit score?

Back

A score given by major credit scoring companies that summarizes your credit history based on your financial behavior.

Front

What does debt mean?

Back

Owing someone money or something of value.

Front

What is income?

Back

Money received; money that comes in.

Front

What is a credit card?

Back

A card issued by a bank or business allowing the holder to purchase goods or services on credit.

Front

What is a savings account?

Back

An account that allows you to deposit money and earn interest.

Front

What is collateral?

Back

An asset that a borrower offers to a lender to secure a loan.

Front

What is an interest rate?

Back

The percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Front

What is a co-signer?

Back

A person who signs a loan or credit application with another person, agreeing to take responsibility for the debt if the primary borrower defaults.

Front

What is APR?

Back

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment.

Front

What is a debit card?

Back

A card that deducts money directly from a checking account to pay for a purchase.