Essential Credit and Debt Terms To Know

The lingo used in the finance world sometimes seems like a foreign language. Here are some terms that will help you translate commonly used credit and debt terms.

Credit Card Terms

• APR, annual percentage rate
• balance transfer
• billing cycle
• billing statement
• credit limit
• finance charge
• grace period
• minimum payment
• non-revolving credit
• revolving credit
• universal default

Credit Report and Score Terms

• charge-off
• credit bureau
• credit inquiry
• credit report
• credit score
• credit utilization
• FICO score

Debt Terms

bankruptcy

debt-to-income ratio

judgment

statute of limitations