- Amortization
- The total time it will take to pay off a loan or mortgage in full with regular payments.
- Annual fee
- A yearly charge for holding a credit card or account.
- APR
- Annual percentage rate: the yearly cost of borrowing, including some fees.
- Balance transfer
- Moving a balance from one card to another, often to get a lower promotional rate.
- Bankruptcy
- A legal process for people who cannot repay their debts. It stays on a credit report for years.
- Collection account
- A debt that the original lender has passed or sold to a collection agency.
- Consumer proposal
- In Canada, a legal agreement to repay part of your debts through a licensed insolvency trustee.
- Credit bureau
- A company that collects credit information and produces credit reports.
- Credit limit
- The most you can borrow on a card or line of credit.
- Credit mix
- The different types of credit on your file, such as cards, loans and mortgages.
- Credit report
- A record of your credit accounts, payments, enquiries and public records.
- Credit score
- A number that summarises your credit report to help lenders estimate risk.
- Credit utilization
- Your revolving balances divided by your total limits, shown as a percentage.
- Debt-to-income ratio
- Your monthly debt payments divided by your gross monthly income.
- Default
- Failing to repay a debt as agreed.
- Down payment
- The part of a home's price you pay up front.
- Equity
- The value of your home minus what you still owe on it.
- Fixed rate
- An interest rate that stays the same for the whole term.
- Goodwill letter
- A request asking a lender to remove an accurate late payment as a courtesy.
- Hard enquiry
- A credit check made when you apply for credit. It can lower your score for a short time.
- HELOC
- Home equity line of credit: a revolving line secured by your home.
- Installment loan
- A loan repaid in fixed payments over a set term, like a car or personal loan.
- Line of credit
- A revolving credit limit you can draw from and repay as needed.
- Minimum payment
- The smallest amount you must pay by the due date to keep the account in good standing.
- Prime rate
- The base rate lenders use to set variable rates.
- Refinancing
- Replacing an existing loan with a new one, usually to change the rate or term.
- Revolving credit
- Credit you can reuse as you pay it down, like cards and lines of credit.
- Secured card
- A credit card backed by a cash deposit that usually sets the limit.
- Soft enquiry
- A credit check that does not affect your score, such as checking your own credit.
- Statement date
- The day your card balance is reported each month.
- Variable rate
- An interest rate that can change with the lender's prime rate.