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| Amortization |
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The paying off of debt in regular installments over a period of time. |
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| APR |
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(Annual Percentage Rate) The cost of credit annualized over a one year period including interest and fees. Because the APR includes interest and fees, it is the rate to use when comparing loans. The APR is most commonly shown as a percentage. |
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| Balance |
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Amount of money in your account. For loans, the balance is the amount still owed on the loan. |
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| Credit |
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A contractual agreement in which a borrower receives something of value now with the agreement to repay the lender at some date in the future. |
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| Debtor |
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A company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower. |
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| Default |
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The failure to promptly pay interest or principal when due. |
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| Endorsement |
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A legal term that refers to the signing of a document that allows for the legal transfer of a negotiable from one party to another. When an employer signs a check, they are endorsing the transfer of money from the business accounts to the account of the employee. |
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| Expenses |
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Things you pay money for — needs and wants. |
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| FICO |
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It is an acronym for the creators of the FICO score, Fair Isaac Credit Corporation. A standard score based on an individual's credit report that credit bureaus sell to lenders so they can assess an applicant's credit risk and whether to extend them credit. |
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| Financing |
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The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide funds to businesses, consumers and investors to help them achieve their goals. |
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| Forbearance |
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A postponement of loan payments granted by a lender or creditor, for a temporary period to enable the borrower to catch up on overdue payments. |
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| Income |
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Money received by a person or organization because of effort (work) or from return on investments. |
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| Interest |
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The amount paid by a borrower to a lender for the privilege of borrowing the money. |
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| Loan |
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When a lender gives money or property to a borrower and the borrower agrees to return the property or repay the borrowed money, perhaps with interest, at a predetermined date in the future. |
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| Principal |
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The amount borrowed or the amount still owed on a loan, separate from interest. |
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| Phishing |
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A method of identity theft by creating a website that seems to represent a legitimate company. Thinking they are buying something from a real business, visitors to the site submit personal information. The criminals then use the personal information for their own purposes, or sell the information to other criminal parties. |
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| Repayment |
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The act of paying back a debt. |
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| Savings |
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The amount left over when expenses are subtracted from income. |
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| Unsecured |
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Loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. |
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| Withdraw |
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To take money out of an account. |
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