#separator:tab #html:false #tags column:4 Credit Borrowing money or buying now and paying later finance-credit-and-loans Debt Money you owe finance-credit-and-loans Loan Money borrowed that must be paid back, usually with interest finance-credit-and-loans Lender A person or business that gives a loan finance-credit-and-loans Borrower The person who receives the loan finance-credit-and-loans Credit card A card that lets you borrow money to buy things and pay later finance-credit-and-loans Credit limit The most you can borrow on a card finance-credit-and-loans Minimum payment The smallest amount you must pay each month finance-credit-and-loans Statement A monthly summary of your card or account activity finance-credit-and-loans Due date The day a payment must be made by finance-credit-and-loans Late fee A charge for paying after the due date finance-credit-and-loans APR Annual percentage rate, the yearly cost of borrowing finance-credit-and-loans Grace period Time to pay a card balance without being charged interest finance-credit-and-loans Balance (credit card) The amount you currently owe finance-credit-and-loans Paying in full Paying the whole statement balance so no interest is charged finance-credit-and-loans Credit score A number that shows how reliably you pay back debts finance-credit-and-loans Credit score range (FICO) 300 to 850 finance-credit-and-loans What helps a credit score Paying on time and keeping balances low finance-credit-and-loans What hurts a credit score Missed payments and maxing out cards finance-credit-and-loans Credit report A record of your borrowing and payment history finance-credit-and-loans Credit bureau A company that collects credit reports; Equifax, Experian, TransUnion finance-credit-and-loans Utilization The share of your credit limit you're using finance-credit-and-loans Good rule for credit utilization Stay below about 30 percent finance-credit-and-loans Secured credit card A card backed by a cash deposit finance-credit-and-loans Cosigner A person who promises to pay if the borrower doesn't finance-credit-and-loans Collateral Property pledged to a lender if a loan isn't paid finance-credit-and-loans Mortgage A loan to buy a home finance-credit-and-loans Down payment Money paid upfront when buying something expensive finance-credit-and-loans Auto loan A loan to buy a car finance-credit-and-loans Student loan A loan to pay for school finance-credit-and-loans Payday loan A very high-cost, short-term loan that is risky finance-credit-and-loans Interest rate The percent charged for borrowing finance-credit-and-loans Fixed rate An interest rate that stays the same finance-credit-and-loans Variable rate An interest rate that can change finance-credit-and-loans Term (loan) How long you have to repay finance-credit-and-loans Amortization Paying off a loan in regular payments over time finance-credit-and-loans Default Failing to repay a loan finance-credit-and-loans Bankruptcy A legal process when someone cannot pay their debts finance-credit-and-loans Repossession A lender taking property when a loan isn't repaid finance-credit-and-loans Debt snowball Paying off the smallest debt first finance-credit-and-loans Debt avalanche Paying off the highest-interest debt first finance-credit-and-loans Identity theft Someone using your personal information without permission finance-credit-and-loans Credit freeze A lock on your credit file to block new accounts finance-credit-and-loans Insurance Paying a fee so a company covers big costs if something bad happens finance-credit-and-loans Premium The regular payment for insurance finance-credit-and-loans Deductible The amount you pay before insurance pays finance-credit-and-loans Health insurance Coverage for medical costs finance-credit-and-loans Auto insurance Coverage for car accidents and damage finance-credit-and-loans Renters insurance Coverage for belongings in a rented home finance-credit-and-loans Life insurance A payment to family after someone dies finance-credit-and-loans Warranty A promise that a company will repair or replace a faulty product finance-credit-and-loans Social Security number A nine-digit US number used for work and taxes; keep it private finance-credit-and-loans W-2 A form from an employer showing yearly pay and taxes withheld finance-credit-and-loans W-4 A form telling an employer how much tax to withhold finance-credit-and-loans Tax return A form reporting your income and taxes to the government finance-credit-and-loans Tax refund Money returned when you paid too much in taxes finance-credit-and-loans 401(k) A US employer retirement savings plan finance-credit-and-loans IRA Individual retirement account finance-credit-and-loans Roth IRA A retirement account with taxed deposits and tax-free growth finance-credit-and-loans Employer match Money an employer adds to your retirement savings finance-credit-and-loans FDIC US agency that insures bank deposits, up to $250,000 per depositor per bank finance-credit-and-loans Rule of 72 Divide 72 by the interest rate to estimate years to double money finance-credit-and-loans Compound growth example $100 at 7% roughly doubles in about 10 years finance-credit-and-loans Overdraft Spending more than your account holds finance-credit-and-loans Overdraft fee A charge for overdrawing an account finance-credit-and-loans