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
- Variable Interest RateA rate that can rise or fall over time based on a benchmark index, which changes how much you owe each month.
- Interest RateThe percentage a lender charges you to borrow money, or pays you to keep money deposited, over a set period.
- APR (Annual Percentage Rate)The yearly cost of borrowing money on a loan or credit card, stated as a percentage that includes interest and certain fees.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
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Plain-English education — not personalized legal, tax, or investment advice.