Plain-language orientation; agreements and official disclosures control specific meanings. Follow the linked guides for primary sources.
- APR
- Annual percentage rate. Its calculation and included charges depend on the credit product and applicable disclosure rules; read the actual disclosure.
- APY
- Annual percentage yield describes deposit interest including compounding under stated assumptions. It is not the same input as a nominal annual rate.
- Amortization
- The repayment of principal over scheduled payments; in a typical fixed installment model the principal and interest portions change over time.
- Collateral
- Property pledged to support an obligation. Consequences of default depend on the agreement and applicable law.
- Deductible
- An amount or calculation a policyholder may bear before or as coverage applies; read policy-specific terms.
- Diversification
- Spreading exposure across investments. It cannot guarantee a profit or prevent all losses.
- Grace period
- A product-specific interval with defined interest or payment consequences. Do not assume every balance or transaction qualifies.
- Liquidity
- How readily an asset can be converted to spendable funds, considering delays, costs and possible losses.
- Principal
- The underlying financed or invested amount, distinct from interest; exact account treatment follows the agreement.
- Premium
- The amount charged for insurance under the policy terms. A lower premium alone does not establish better coverage.
- Utilization
- A balance-to-credit-limit ratio for revolving credit; a descriptive measure rather than a score prediction.
- Yield
- A return measure whose definition and assumptions must be specified. A quoted yield is not a guaranteed realized outcome.