Plain-English guides to credit scores, credit reports, credit cards, debt payoff, medical debt, debt collection, borrowing, and avoiding costly credit mistakes.
Revolving credit lets you borrow up to a limit, repay, and borrow again. Learn how it works, how it differs from installment loans, and how it affects your credit score.
A finance charge is the total cost of borrowing money, including interest and certain fees. Learn what makes up a finance charge and how to reduce or avoid it.
A billing cycle is the period of time between two credit card statements. Learn how the billing cycle works, why it matters for interest and due dates, and how to use it to your advantage.
A minimum payment is the smallest amount you must pay on a credit card each month to stay current. Learn how it’s calculated and why paying only the minimum can cost you a fortune.
A charge-off happens when a lender writes off a debt as a loss after months of missed payments — but you still owe it. Learn what a charge-off means for your credit.
An origination fee is an upfront charge a lender adds for processing a new loan. Learn what origination fees cover, how much they cost, and whether you can negotiate them.
Your debt-to-income ratio (DTI) is the share of your monthly income that goes toward debt. Learn how to calculate DTI, what’s a good ratio, and why lenders care.
Underwriting is the process a lender or insurer uses to evaluate your risk before approving a loan or policy. Learn what underwriting is and what underwriters look at.
Refinancing means replacing an existing loan with a new one — usually to get a lower interest rate or better terms. Learn how refinancing works and when it’s worth it.
Your statement balance is what you owed at the end of your last billing cycle — and it’s the amount to pay to avoid interest. Learn how it differs from your current balance.