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Credit Terms

Financial terms related to credit scores, borrowing, and debt management.

Credit Score

A three-digit number representing your creditworthiness based on your credit history.

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Credit Utilization

The ratio of credit card balances to total credit limits; ideally kept below 30%.

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Debt Consolidation

Combining multiple debts into a single loan with potentially lower interest rates.

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Default

Failure to repay a loan or meet other financial obligations according to terms.

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FICO Score

The most widely used credit scoring model, ranging from 300 to 850.

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Credit Card

A payment card allowing you to borrow money from a card issuer, repaid monthly.

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Debt-to-Income Ratio (DTI)

The share of your gross monthly income that goes to debt payments. Lenders use it to gauge how much more you can borrow.

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