Annual Percentage Rate (APR)
Yearly interest rate charged on borrowed money. The rate is expressed as a percentage and indicates how much interest the borrower will pay over the course of a year.
Things a person owns (even if they still owe money against them).
Interest earned on previously accumulated interest as well as the principal.
A number between 280-850, depending on the credit bureau meant to show how creditworthy an individual is/how likely a borrower is to repay a debt. Higher scores mean better credit, which can lead to financial benefits such as better terms on loans.
A record of a borrower’s credit history. It is produced by the credit bureaus and typically consists of four sections: personal information, financial account history, history of credit applications, and public records. The information is used to calculate a consumer’s credit score, which is one of the primary factors considered in evaluating a credit application.
A plan for saving and spending based on expected income and expenses.
Budgeting method that divides a person's monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.
Money that has been borrowed that needs to be paid back. For example, mortgage is a debt owed to the bank.
Money that is set aside in case of emergencies.
Things that you spend money on, ex: bills, car payments, groceries, credit card payments.
Expenses that remain constant.
Estimating a business or person's future financial performance.
Total income before taxes are deducted.
The money that is brought in on a regular basis through one's job, investments or other sources of money. In terms of making a budget, be sure to use your take-home pay, which is income after taxes, benefits and other deductions.
The cost of borrowing money.
The cost of borrowing money, expressed as a percentage, usually over a period of one year.
Total income after taxes are deducted.
The total value of a person or company, calculated by subtracting liabilities from total assets.
The amount of money that has been borrowed.