Build Your Financial Knowledge with the Kikoff Financial Dictionary

Kikoff is always here to help you out on your credit journey. We want to build your financial confidence along the way.

What is a creditor? How do you explain debt? This financial glossary is designed to explain the financial terms most important to you.

A

APR (Annual Percentage Rate)

The APR or cost of borrowing money every year is expressed as a percentage rate.

C

Credit Report

A credit report is a summary of your credit history and current credit situation, including your loan payment history and the status of your credit accounts. Lenders use this information to decide whether to lend you money and what interest rates to offer.

Credit Score

A credit score is a number calculated from your credit history. This score helps lenders see your creditworthiness and determine the terms of credit offers or loans. Whatever your credit score, Kikoff has tools to help you address the 3 major factors that contribute to your credit score: positive payment history, length of credit history, and low utilization rate.

Credit utilization rate

Your credit utilization rate is the percentage of credit that you're using across any credit card or line of credit.

Cosigner

A co-signer is generally someone who has a stable income and good credit history and who agrees to be responsible for the debt if you cannot make payments.

I

Interest Rate

An interest rate is a percentage that a lender charges you to use borrowed money. When you borrow money, you pay interest based on this rate.

S

Secured credit card

Unlike traditional credit cards, secured cards require a cash deposit as collateral to start things off, which typically becomes your credit limit.

Apply what you've learned!

Hopefully, this list of financial terms can be your new home base whenever you're confused about money. Whatever your long-term goals are, Kikoff provides fair, effective, and simple tools that empower you to meet your financial goals.

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