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
- Fixed Interest RateA rate that stays the same for the life of a loan, so your payment amount does not change over time.
- Interest RateThe percentage a lender charges you to borrow money, or pays you to keep money deposited, over a set period.
- Prime RateThe base interest rate banks charge their most creditworthy customers, used as a starting point for many consumer loan rates.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Purchase APRThe interest rate applied to everyday purchases on a credit card when you carry a balance past the grace period.
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Plain-English education — not personalized legal, tax, or investment advice.