Borrowing glossary
Borrowing Glossary
Use this glossary to understand the terms that change the real cost of borrowing. Knowing the terminology makes comparisons faster and less misleading.
APR
Annual Percentage Rate. A yearly measure of borrowing cost that may include interest and certain fees.
Minimum Payment
The smallest amount you can pay on a credit card balance without being late. Paying only this amount can keep debt alive for a long time.
Amortization
A repayment schedule that shows how each payment is split between interest and principal over time.
Origination Fee
An upfront fee charged when a loan is created. It can increase the effective cost even if the interest rate looks low.
Repayment Pressure
How hard it feels to make regular payments based on your income, term, and debt size.
Total Cost
The full amount you pay back over the life of the loan or card balance, including principal, interest, and relevant fees.