Annual Percentage Rate (APR) — The yearly interest rate including fees charged on a loan.

Accrued Interest — Interest that accumulates on a loan but has not yet been paid.

Amortization — Gradual repayment of a loan in fixed installments over time.

Applicant — A person who applies for a loan or credit.

Auto Loan — A loan used to purchase a vehicle.

Balance Transfer — Moving debt from one credit account to another with better terms.

Balloon Payment — A large payment due at the end of a loan term.

Bankruptcy — A legal process for people or businesses unable to repay debts.

Borrower — The individual or entity who takes out a loan.

Charge-Off — When a lender writes off a debt as unlikely to be collected.

Collateral — Property or assets pledged to secure a loan.

Co-signer — A person who guarantees loan repayment alongside the borrower.

Consolidation Loan — A loan that combines multiple debts into one payment.

Credit Limit — The maximum amount of credit available to a borrower.

Credit Report — A detailed record of a person’s credit history.

Credit Score — A numerical rating representing creditworthiness.

Debt-to-Income Ratio (DTI) — The ratio of monthly debt payments to monthly income.

Default — Failure to repay a loan according to its terms.

Disbursement — The release of loan funds to the borrower.

Equity — The value of an asset minus any debts against it.

Escrow — Funds held by a third party until conditions of a contract are met.

FICO Score — A common type of credit score used by lenders.

Fixed Interest Rate — An interest rate that remains the same throughout the loan.

Foreclosure — The process of repossessing property due to loan default.

Grace Period — Time during which payments can be made without penalty.

Hard Credit Inquiry — A credit check that can lower a credit score.

Home Equity Loan — A loan secured by the equity in a home.

Installment Loan — A loan repaid with fixed monthly payments over time.

Interest Rate — The percentage charged on the principal loan amount.

Lender — The organization or individual who loans money.

Loan Term — The length of time to repay a loan.

Line of Credit — A flexible loan with a set borrowing limit.

Minimum Payment — The smallest amount a borrower must pay monthly.

Negative Amortization — When loan payments don’t cover interest, increasing debt.

Origination Fee — A fee charged for processing a new loan.

Payment Schedule — A timeline detailing payment amounts and due dates.

Personal Loan — An unsecured loan for personal use, often with fixed terms.

Prepayment Penalty — A fee for paying off a loan early.

Principal — The original amount borrowed, excluding interest.

Promissory Note — A legal document promising repayment of a loan.

Refinancing — Replacing an existing loan with a new one under different terms.

Revolving Credit — Credit with a limit that can be reused as balances are paid off.

Secured Loan — A loan backed by collateral.

Soft Credit Inquiry — A credit check that does not affect the credit score.

Subprime Loan — A loan offered to borrowers with poor credit history.

Underwriting — The process lenders use to evaluate loan applications.

Variable Interest Rate — An interest rate that can change over the life of a loan.

Withdrawal — Taking money out from a bank account or credit line.

Annual Fee — A yearly fee charged for credit card use or loan maintenance.

Debt Consolidation — Combining multiple debts into a single loan with one payment.

Delinquency — Late or missed loan payments.

Default Judgment — Court ruling against a borrower who fails to respond to a lawsuit.

Equifax, Experian, TransUnion — The three major credit bureaus in the U.S.

Grace Period — Time after a payment due date during which payment can be made without penalty.

Income Verification — Documentation proving a borrower’s earnings.

Late Fee — A penalty for missing a payment deadline.

Loan Agreement — Contract outlining loan terms between lender and borrower.

Loan Officer — A bank or lender representative who assists with loans.

Mortgage — A loan specifically for purchasing real estate.

Payment History — A record of a borrower’s past loan payments.

Pre-approval — Conditional loan approval based on initial credit check.

Pre-qualification — Early loan assessment without a full credit check.

Principal Balance — The remaining amount of the original loan to be paid.

Rate Lock — Guarantee that an interest rate will not change before loan closing.

Refinance — Replacing an existing loan with a new loan with better terms.

Secured Credit Card — A credit card backed by a cash deposit as collateral.

Settlement — Agreement to pay less than the full loan amount owed.

Term — The length of time for loan repayment.

Title — Legal ownership of property.

Title Loan — A loan secured by a vehicle’s title.

Truth in Lending Act (TILA) — U.S. law requiring disclosure of loan terms and costs.

Unsecured Loan — A loan not backed by collateral.

Verification of Deposit (VOD) — Document verifying bank account balances.

Voluntary Payment — Extra payment made to reduce loan principal.

Written Off Debt — Debt that a lender has removed from their accounts due to non-payment.

Zero Percent APR — Promotional interest rate of 0% for a limited time.

Annual Credit Report — Free yearly credit report available to consumers.

Bank Statement — Summary of financial transactions in a bank account.

Borrowing Capacity — Maximum loan amount a borrower qualifies for.

Chargeback — Reversal of a credit card transaction by the card issuer.

Closing Costs — Fees paid at loan closing, including appraisal and legal fees.

Credit Utilization Ratio — Percentage of available credit currently used.

Debt Service Coverage Ratio (DSCR) — Measure of cash flow available to pay debts.

Direct Deposit — Electronic transfer of funds into a bank account.

Dispute — Formal challenge to credit report information.

E-signature — Electronic signature on digital loan documents.

Fixed-Rate Mortgage — Mortgage with a fixed interest rate for entire term.

Grace Period — Period when payments can be delayed without penalty.

Income Ratio — Ratio of income to debt used for loan qualification.

Late Payment — Payment received after due date.

Loan Servicer — Company managing loan payments and customer service.

Mortgage Broker — Middleman who connects borrowers with lenders.

Notice of Default — Formal notice of missed loan payments.

Online Banking — Managing bank accounts over the internet.

Payment Processor — Company that handles loan payment transactions.

Personal Identification Number (PIN) — Security code for access to accounts.

Prepaid Credit Card — Card loaded with funds before use.

Principal Reduction — Payments applied directly to loan balance.

Secured Debt — Debt backed by collateral.

Variable Rate Loan — Loan with interest rate that fluctuates over time.

Account Statement — A periodic summary of transactions and balances on an account.

Adjustable-Rate Mortgage (ARM) — A mortgage with an interest rate that changes periodically.

Advance — Early payment or withdrawal of funds.

Affiliate Marketing — Promoting products or services in exchange for commissions.

Annual Fee Waiver — Cancellation of annual fees by a credit card issuer.

Authorized User — Person allowed to use someone else’s credit card account.

Automated Clearing House (ACH) — Electronic network for financial transactions.

Available Credit — The amount of credit currently available to borrow.

Balance — The amount owed or available in an account.

Banking Institution — Organization that accepts deposits and offers loans.

Bill Pay — Service allowing automatic or manual payment of bills.

Borrowing Base — The maximum amount a borrower can draw from a credit facility.

Bridge Loan — Short-term loan to cover immediate financing needs.

Capital — Financial assets or resources owned by a person or company.

Cash Advance — Withdrawal of cash using a credit card.

Cash Flow — The total amount of money being transferred in and out.

Certificate of Deposit (CD) — Savings certificate with fixed interest and maturity date.

Charge Card — Card requiring full payment each billing cycle without interest.

Clearing — Process of settling transactions between banks or parties.

Closed-End Loan — Loan with fixed amount and repayment schedule.

Co-borrower — A second borrower who shares responsibility for the loan.

Credit Bureau — Agency that collects and reports credit information.

Credit Counseling — Service providing advice on managing debt and credit.

Credit Freeze — Restriction preventing new credit inquiries on a credit report.

Credit Line Increase — Raising the available credit limit on an account.

Credit Monitoring — Service that tracks changes to a credit report.

Credit Protection — Insurance or service protecting against inability to repay loans.

Credit Report Dispute — Formal challenge to incorrect credit report info.

Credit Utilization — Percentage of credit limit currently being used.

Creditworthiness — Evaluation of a borrower’s ability to repay debt.

Debt Management Plan (DMP) — Agreement to repay debt via structured payments.

Debt Relief — Programs aimed at reducing or restructuring debt.

Debt Settlement — Negotiation to pay less than the full owed amount.

Default Rate — Interest rate applied after borrower defaults.

Direct Lending — Lending directly from lender to borrower without intermediaries.

Disbursement Date — Date loan funds are distributed.

Down Payment — Initial upfront payment on a purchase or loan.

Due Date — The deadline to make a payment.

Early Payoff — Paying off a loan before the scheduled end date.

Electronic Funds Transfer (EFT) — Transfer of money electronically.

Employment Verification — Process of confirming a borrower’s job status.

Equifax — One of the three major credit reporting agencies.

Escrow Account — Account holding funds for taxes or insurance payments.

Estimate of Costs — Approximate calculation of loan-related expenses.

Excess Payment — Payment made over the required amount.

Experian — One of the three major credit bureaus.

Fair Credit Reporting Act (FCRA) — U.S. law regulating credit reporting.

Finance Charge — The total cost of borrowing, including interest and fees.

Financial Institution — Entity that offers financial services, such as banks.

Fixed Payment — Loan payment that stays the same each period.

Forbearance — Temporary suspension or reduction of loan payments.

Fraud Alert — Warning placed on a credit report to prevent identity theft.

Fully Amortized Loan — Loan fully paid off by regular payments over time.

Grace Period for Interest — Time when no interest is charged after a transaction.

Hardship Program — Assistance plan for borrowers struggling financially.

HELOC (Home Equity Line of Credit) — Revolving credit secured by home equity.

Identity Theft — Unauthorized use of someone’s personal information.

Income Documentation — Papers proving income, like pay stubs or tax returns.

Inflation — Rise in prices reducing purchasing power.

Initial Interest Rate — Starting rate on an adjustable loan.

Installment Payment — Regular, fixed payments toward loan repayment.

Insurance Premium — Amount paid for insurance coverage.

Interest-Only Loan — Loan where only interest is paid for a set period.

Introductory Rate — Temporary low interest rate at loan or credit start.

Jumbo Loan — Loan exceeding conforming loan limits, often for high-value properties.

LATE PAYMENT — Payment made after its due date.

Lien — Legal claim on property until debt is paid.

Line of Credit Agreement — Contract outlining terms of a credit line.

Loan Consolidation — Combining multiple loans into one.

Loan Disbursement — Release of funds to borrower.

Loan Modification — Change in loan terms agreed by lender and borrower.

Loan Processor — Person who prepares loan applications and documentation.

Loan-to-Value Ratio (LTV) — Ratio of loan amount to property value.

Loss Mitigation — Strategies to reduce lender losses when borrower defaults.

Margin — Difference between interest rate index and loan rate.

Minimum Credit Score — Lowest score required to qualify for a loan.

Mortgage Insurance — Insurance protecting lender if borrower defaults.

Mortgage Note — Legal document outlining mortgage loan details.

Negative Equity — When property value is less than loan balance.

Non-Performing Loan — Loan with overdue payments for a specified time.

Origination Date — Date when a loan is issued.

Overdraft — Spending more than available funds in an account.

Outstanding Balance — Remaining loan amount owed.

Payment Default — Failure to make scheduled loan payments.

Payment Holiday — Temporary suspension of loan payments.

Payment Plan — Schedule of payments agreed upon by lender and borrower.

Personal Identification Number (PIN) — Secret code for account security.

Point — A fee equal to 1% of the loan amount.

Pre-approval Letter — Document stating preliminary loan approval.

Prepayment — Paying a loan before it’s due.

Prime Rate — Interest rate commercial banks charge their best customers.

Principal Balance — Amount of the loan excluding interest.

Processing Fee — Fee charged for handling loan paperwork.

Prosperity Score — Alternative credit scoring model.

Qualification Criteria — Requirements to be eligible for a loan.

Rate Cap — Maximum interest rate on adjustable loans.

Refinance Closing Costs — Fees associated with refinancing a loan.

Repayment Period — Length of time to repay a loan.

Rescission Period — Time to cancel a loan agreement without penalty.

Reverse Mortgage — Loan allowing seniors to convert home equity into cash.

Risk Assessment — Evaluation of the likelihood a borrower will default on a loan.

Rollover — Extending a loan or credit term to a new period.

Savings Account — Bank account designed to hold money and earn interest.

Secured Credit — Credit backed by collateral to reduce lender risk.

Security Interest — Legal claim on collateral in case of loan default.

Self-Employed Income — Income earned from one’s own business or freelance work.

Servicing Fee — Fee charged for managing a loan account.

Settlement Agreement — Contract resolving a debt dispute between borrower and lender.

Shared Equity Loan — Loan where lender shares in property’s appreciation.

Short Sale — Sale of property for less than the outstanding mortgage balance.

Signature Loan — Unsecured personal loan based on borrower’s signature and creditworthiness.

Soft Inquiry — Credit check that does not affect credit score.

Statement Period — Time frame covered by a credit card or loan statement.

Subordination — Agreement that one debt is secondary to another in priority.

Tax Lien — Government claim on property due to unpaid taxes.

Title Insurance — Protection against losses from title defects.

Trade Line — Account listed on a credit report detailing credit history.

Transaction Fee — Charge for processing a financial transaction.

Trust Account — Account held by a trustee on behalf of a beneficiary.

Undersecured Loan — Loan backed by collateral valued less than loan amount.

Unemployment Insurance — Benefits paid to unemployed workers.

Unsecured Debt — Debt not backed by collateral.

Use of Proceeds — How loan funds will be used by the borrower.

Utility Payment History — Record of payments for utilities, sometimes used in credit assessments.

Variable Rate Mortgage — Mortgage with interest rate that can change periodically.

Vesting — Process by which a borrower gains ownership rights.

Waiver — Voluntary relinquishment of a right or claim.

Withdrawal Limit — Maximum amount that can be withdrawn from an account in a period.

Wire Transfer — Electronic transfer of funds between banks.

Yield — Earnings generated on an investment or loan, expressed as a percentage.

Zero Balance — Account with no outstanding debt or balance.

Accounting Period — Specific time frame for financial reporting.

Add-On Interest — Interest calculated on the original principal throughout the loan term.

Adverse Action — Negative credit decision by a lender.

Agency Loan — Loan insured or guaranteed by a government agency.

Amendment — Official change to a loan agreement.

Annual Percentage Yield (APY) — The annual rate of return accounting for compounding interest.

Arrears — Overdue payments.

Assessed Value — Value assigned to property for tax purposes.

Assignment — Transfer of rights or property to another party.

Assumption — Taking over responsibility for an existing loan.

Automated Teller Machine (ATM) — Machine that allows banking transactions.

Available Balance — Funds available for withdrawal.

Balance Due — Amount owed on an account.

Basis Point — One hundredth of a percentage point (0.01%).

Beneficiary — Person entitled to receive benefits or assets.

Bill of Sale — Document transferring ownership of goods.

Borrower’s Rights — Legal protections afforded to loan recipients.

Break-even Point — When income equals expenses.

Budgeting — Planning income and expenditures.

Capital Gain — Profit from the sale of an asset.

Capital Loss — Loss from the sale of an asset.

Cash Flow Statement — Financial statement showing cash inflows and outflows.

Certificate of Occupancy — Document certifying building compliance.

Chargeback Fee — Fee charged when a transaction is reversed.

Clean Credit Report — Report with no negative marks.

Closing Disclosure — Statement detailing final loan terms and costs.

Collateral Value — Appraised value of collateral.

Collection Account — Account assigned to a debt collector due to non-payment.

Consumer Credit Counseling Service (CCCS) — Organization helping consumers manage debt.

Contingency — Condition that must be met for contract completion.

Contract Rate — Interest rate stated in the loan agreement.

Conventional Loan — Mortgage not insured or guaranteed by government agencies.

Conversion Clause — Allows changing loan terms under certain conditions.

Cooperative Housing (Co-op) — Housing owned collectively by residents.

Cosigner Release — Removing a cosigner from loan obligations.

Credit Bureau Report — Another term for credit report.

Credit Card Balance — Amount owed on a credit card.

Credit Counseling Agency — Organization offering debt management help.

Credit Insurance — Insurance protecting loan payments in certain situations.

Credit Limit Increase — Raising the maximum allowed credit.

Credit Monitoring Service — Service alerting consumers to credit report changes.

Credit Repair — Efforts to improve credit scores.

Credit Risk — The risk a borrower will default.

Credit Score Range — The spectrum of possible credit scores.

Credit Utilization Ratio — Portion of available credit currently used.

Current Balance — Outstanding amount on a credit account.

Debt Collection — Process of pursuing payment on overdue debts.

Debt Counseling — Professional advice on managing debt.

Debt Load — Total amount of debt owed.

Debt-to-Asset Ratio — Ratio of total debt to total assets.

Deferred Payment — Payment postponed to a later date.

Default Notice — Formal warning of loan default.

Delinquency Period — Time during which a payment is overdue.

Depreciation — Reduction in value of an asset over time.

Direct Debit — Automatic withdrawal of funds from an account.

Disbursement Schedule — Timeline for loan fund release.

Discount Points — Fees paid to reduce loan interest rate.

Due-on-Sale Clause — Requirement to repay loan if property is sold.

Earnest Money — Deposit showing buyer’s commitment in real estate.

Earnings Before Interest and Taxes (EBIT) — Company’s profit before deducting interest and taxes.

Electronic Statement — Digital account statement.

Employer Verification — Confirmation of borrower’s employment.

Equity Loan — Loan secured by home equity.

Escrow Analysis — Review of escrow account balances and payments.

Estimated Taxes — Taxes estimated for the year, paid in advance.

Excess Income — Income beyond expenses and debt payments.

Exclusion Clause — Contract term that excludes certain conditions.

Expense Ratio — Percentage of income spent on expenses.

Fair Market Value — Price a property would sell for on the open market.