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FICO

A system of ratings used to calculate credit scores.

Credit report

A detailed report of an individual's credit history.

Bankruptcy

A legal status for a person or entity that cannot repay the debts it owes.

Installment loan

A loan that is repaid over time with a set number of scheduled payments.

Credit history

A record of a borrower's responsible repayment of debts.

Standard of living

The degree of wealth and material comfort available to a person or community.

Spending limits

An established maximum amount of money that can be spent in a given period.

Impulse buying

Purchasing goods without premeditation or planning.

Savings account

A bank account that earns interest on your deposits.

Product loans

Loans for purchasing products, typically having lower interest rates.

Compound interest

Interest on interest, allowing for savings to grow more quickly.

Emergency fund

Savings set aside for unexpected expenses.

Credit score improvement

Actions taken to enhance an individual’s credit score.

Bankruptcy credit impact

All forms of bankruptcy negatively affect credit ratings.

Chapter 11

A form of bankruptcy known as business reorganization.

Secured loan

A loan backed by collateral to reduce risk for the lender.

Unused credit

The difference between a person's credit limit and their credit balance.

Revolving credit

A credit arrangement that allows a borrower to use credit repeatedly up to a set limit.

Collateral

An asset pledged as a guarantee against a loan.

Creditor

A person or institution that lends money.

Interest

The cost of borrowing money, typically expressed as a percentage.

Credit vs Cash

A statement indicating that credit can be more expensive than paying cash.

Buying plan

A structured approach to purchasing decisions, involving steps such as research.

Bounced check

A check that cannot be processed due to insufficient funds.

Debit card

A card that allows you to make point-of-sale purchases using your bank funds.

Cashier’s check

A check issued and guaranteed by a bank.

Outstanding checks

Checks that have been written but not yet cleared.

Financial institution

Organization that provides financial services, not including entities like the Federal Reserve.