APR - APR, or annual percentage rate, is the annual rate charged for borrowing money. The lower the APR (also called interest rate) the more you save.
A&H Insurance - Accident and health insurance is a broad term that covers specialty policies available through an employer. It's insurance coverage that pays benefits in case of sickness, accidental injury or accidental death. It sometimes pays for loss of income or for debt payment if it's in connection with a loan.
Annual Income - Total amount of income earned annually. Gross annual income represents the amount of money a person earns in one year from all sources before taxes.
Auto Loan - An auto loan is a type of secured loan, which means that the borrower must up a valuable item to serve as collateral. If the borrower is unable to pay back the loan, the lender can then seize the collateral and sell it in order to recoup their losses. Since auto loans are used to purchases motor vehicles, the vehicle that is being purchased is what serves as collateral.
Bond - A fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
CD - A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions. CDs are similar to savings accounts in that they are insured "money in the bank" and thus virtually risk free.
Checking Account - A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both.
Credit Card - A credit card is the most common way to access a line of credit. Usually issued by a bank or financial services company, credit cards allow account holders to make purchases on credit without having to put up cash at the point of sale.
Debt Consolidation - Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones. In effect, multiple debts are combined into a single, larger piece of debt, usually with more favorable payoff terms: a lower interest rate, lower monthly payment or both.
Debt - Debt is an amount of money borrowed by one party from another, often for making large purchases that they could not afford under normal circumstances.
Documentation fee - Documentation Fee. Sometimes called a "doc fee" or "conveyance fee," this is supposed to cover the dealer's cost for processing the paperwork for the purchase, title, and registration.
Down Payment - A down payment is a type of payment made in cash during the onset of the purchase of an expensive good or service. The payment typically represents only a percentage of the full purchase price; in some cases, it is not refundable if the deal falls through. In most cases, the purchaser makes financing arrangements to the cover the remaining amount owed to the seller.
Debt Security - A debt security represents money that is borrowed and must be repaid, with terms that stipulates the size of the loan, interest rate and maturity or renewal date.
Equity Security - An equity security represents ownership interest held by shareholders in an entity (a company, partnership or trust), realized in the form of shares of capital stock, which includes shares of both common and preferred stock.
Financial Literacy - Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.
GAP Waiver - A type of guaranteed auto protection.
Home Improvement Loan - Typically, a short-term loan advanced for improvements in a residential property, such as additions and alterations, maintenance and repair, or replacement of structural parts.
Interest Rate - Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).
IRA - An individual retirement account is an investing tool individuals use to earn and earmark funds for retirement savings.
Investment - The action or process of investing money for profit or material result.
Life Insurance - Insurance that pays out a sum of money either on the death of the insured person or after a set period.
Mortgage - A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.
Minimum Payment - The minimum payment is the lowest amount of money that you are required to pay on your credit card statement each month. See your credit card "terms and conditions" document to see how your credit card's minimum payment is calculated.
Monthly Payment - A monthly payment is the amount a borrower is required to pay each month until a debt is paid off. Monthly payments are specified in loan documents — how they are calculated, when they are due, and what happens if they are not made as agreed.
Payday Loan - A payday loan is a type of short-term borrowing where a lender will extend high interest credit based on a borrower's income and credit profile. A payday loan's principal is typically a portion of a borrower's next paycheck. These loans are also called cash advance loans or check advance loans.
Personal Loan - Personal loans are backed only by your promise to repay, and for this reason they are also known as "signature loans" or "unsecured loans." This kind of financing usually (but not always) comes with a fixed interest rate and a term ranging from one to five years.
Roth IRA - An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59.5 are tax-free.
Risk - Various types of risk associated with financing, including financial transactions that include company loans in risk of default.
Savings Account - A savings account is an interest-bearing deposit account held at a bank or another financial institution that provides a modest interest rate.
Stock - A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
Secured Loan - A secured loan, is a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan.
Signature Loan - Signature loans are unsecured personal loans offered by banks, credit unions, and other financial institutions. Instead of relying on the applicant’s assets as collateral, a signature loan relies on a borrower’s signature as a promise to pay. Alternative names for this type of loan are good faith loans or character loans.
Term - The number of months a loan requires to be paid in full.
Travel Loan - A type of Unsecured Personal Loan that is intended for travel purposes. It can help cover the costs associated with your holiday, such as airfares, accommodation, tours, and even new travel accessories.
Tax and Tag Fees - Tax and tag fees are calculated based on a number of factors, including the county the vehicle is registered in, the vehicle weight, the type of license plates, whether or not you have a trade-in, the state in which you live, and new car sales tax or used car sales tax
Unsecured Loan - a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral
Wedding Loan - A wedding loan is an unsecured personal loan that you take out to pay for your ceremony or reception. Some lenders refer to this type of debt as wedding loans, while others categorize it as loans used for special occasions.