Credit Terms
Financial terms related to credit scores, borrowing, and debt management.
Credit Score
A three-digit number representing your creditworthiness based on your credit history.
Credit Utilization
The ratio of credit card balances to total credit limits; ideally kept below 30%.
Debt Consolidation
Combining multiple debts into a single loan with potentially lower interest rates.
Default
Failure to repay a loan or meet other financial obligations according to terms.
FICO Score
The most widely used credit scoring model, ranging from 300 to 850.
Credit Card
A payment card allowing you to borrow money from a card issuer, repaid monthly.
Debt-to-Income Ratio (DTI)
The share of your gross monthly income that goes to debt payments. Lenders use it to gauge how much more you can borrow.