Build your money vocabulary.

Terms that decide what you can borrow, and on what terms.

• FeaturedDebt-to-Income RatioThe share of your monthly income already spoken for by debt payments.Read the term →
• APRThe yearly cost of borrowing, interest plus fees, in one number.Read the term →
• Loan TermHow long you have to repay, the lever that trades monthly payment against total cost.Read the term →
• Origination FeeWhat a lender charges to set up your loan, often taken out of the amount you receive.Read the term →
• PrequalificationAn early estimate of what you could borrow, before a formal application.Read the term →
• Secured vs. Unsecured LoanWhether the loan is backed by something you own, or only by your promise to repay.Read the term →

What your credit file actually measures, and what moves it.

• Charge-OffWhen a lender writes off a debt as unlikely to be repaid. You still owe it.Read the term →
• Credit MixThe variety of credit types you manage, from cards to installment loans.Read the term →
• Credit ScoreA number lenders use to summarize how you have handled credit so far.Read the term →
• Credit UtilizationHow much of your available credit you're using right now.Read the term →
• Hard InquiryA lender checking your credit for a real application, which can dip your score briefly.Read the term →
• Payment HistoryWhether you have paid on time, the single biggest factor in most scores.Read the term →

The value sitting in your home, and the ways to reach it.

• Cash-Out RefinanceReplacing your mortgage with a larger one and taking the difference in cash.Read the term →
• Closing CostsThe fees due to finalize a mortgage or home equity product.Read the term →
• Draw PeriodThe stretch of years when you can borrow from a credit line before repayment begins.Read the term →
• HELOCA credit line secured by your home that you draw from as needed.Read the term →
• Home EquityWhat your home is worth today minus what you still owe on it.Read the term →
• Loan-to-Value Ratio (LTV)How much you owe on a home compared to what the home is worth.Read the term →

Terms for paying things down and building a cushion.

• AmortizationHow each payment splits between interest and the balance itself over time.Read the term →
• APYWhat savings actually earn in a year once compounding is counted.Read the term →
• Balance TransferMoving card debt to a new card, often at a lower promotional rate.Read the term →
• Debt ConsolidationCombining several debts into one payment, usually to simplify or lower it.Read the term →
• Emergency FundMoney set aside so an unexpected bill does not become new debt.Read the term →