A three-digit number (300–850) that represents your creditworthiness based on your credit history.
A credit score predicts how likely you are to repay debt on time. Lenders use it to decide whether to approve loans and what interest rate to offer.
Payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), new credit inquiries (10%).
The yearly cost of borrowing money expressed as a percentage, including fees and interest.
Interest calculated on both the initial principal and the accumulated interest from previous periods.
The process of spreading loan payments over time so each payment covers both principal and interest.
A ratio measuring the gain or loss from an investment relative to its cost, expressed as a percentage.
The total value of all assets minus all liabilities, representing overall financial health.
The ownership value in an asset after subtracting any debts owed against it.