A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- FICO ScoreThe most widely used credit score model, ranging from 300 to 850, that lenders check to gauge how risky you are to lend to.
- Credit ScoreA number that sums up how you've handled borrowing, shaping the rates you're offered.
- Installment LoanA loan repaid in fixed, scheduled payments over a set term, such as an auto loan, student loan, or personal loan.
- Revolving CreditA type of borrowing where you can repeatedly use and repay up to a limit, like a credit card, without a fixed payoff date.
- Credit ReportA detailed record of your borrowing history, including accounts, balances, and payment behavior, kept by the credit bureaus.
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Plain-English education — not personalized legal, tax, or investment advice.