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Financial jargon simplified: credit

Doing some homework to understand important jargon can help you navigate credit with confidence.

Jargon Simplified: Credit

  • Revolving Credit
    Think credit card. A revolving account doesn't have an end date. You have a credit limit and must make payments toward the balance each month.
  • Installment Credit
    Think student loan or car loan. Installment credit is a loan that's repaid over a defined period of time.
  • Individual Account
    An account in which one person is responsible for the terms and payment obligations.
  • Joint Account
    An account in which two people share the responsibility for the terms & payment obligations.
  • Authorized User
    An authorized user is somone the account owner gives permission to use an account. The account owner, however, is ultimately responsible for payment.

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