Credit
Incentives encouraging credit card use, often offered to customers in the form of cash back, airline discounts, or points to redeem for certain shopping items.
Rewards
A bureau of the Department of Treasury that is tasked with the enforcement of income tax laws and oversees the collection of federal income taxes.
IRS (Internal Revenue Service)
The specific amount of money an insured individual must pay before the insurer will pay out a claim
Deductible
Loans for undergraduate students with financial need, does not accrue interest while students are enrolled in school at least half time.
Subsidized Loan
A document that states the loan amount a lender is willing to make to a borrower.
Preapproval Letter
The interest on your credit card expressed as a yearly rate
APR (Annual Percentage Rate)
An IRS tax form used by employers to report annual wages paid to employees and the taxes withheld from them
W2 Form
A periodic amount paid by the insured to an insurance company to cover future claims
Premium
Loans for undergraduate/grad students that begin to accrue interest upon disbursement.
Unsubsidized Loan
The number of years you’ll have the homeowner loan before payoff (used to calculate the monthly mortgage payment)
Mortgage Term
The leeway time you are given to pay your balance before a finance charge is applied
Grace Period
An IRS tax form used for personal federal income tax returns filed by residents.
1040 Form
The maximum amount of money an insurer agrees to pay per claim
Liability Limit
A period of time that the student may reduce or postpone repayment of a loan.
Deferment
A form of property insurance that covers losses and damages to an individual’s residence.
Homeowner Insurance
A number assigned to a person that indicates to lenders their capacity to repay a loan. Ranges from 300-850.
Credit Score
The standard reduction that decreases your total gross income.
Deduction
Something that is pledged as a security in case an individual fail to meet financial obligations
Collateral
This occurs when a borrower fails to pay back a debt according to the initial arrangement.
Default
The costs you’ll end up paying when you close on a house
Closing Costs
A company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions (Equifax, Experian, and TransUnion)
Credit Bureau
The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year
Taxable Income
The maximum amount of money an insurer agrees to pay per claim/per policy
Annual Limit
A plan that sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size.
Income-Driven Repayment Plan
The action of taking possessions of a mortgaged property when the owner fails to keep up with the payments.
Foreclosure