Rung Financial
Glossary
Look up the terms used in our guides and calculators.
Every term we use, defined once in plain words. No jargon for its own sake.
Credit basics
- APR
- The yearly cost of borrowing, shown as a percent. It rolls interest and fees into one number. See how to read an APR.
- Credit score
- A number lenders use to judge how you handle credit. Payment history is the biggest part.
- Credit bureau
- A company that keeps your credit file. The three main ones are Equifax, Experian, and TransUnion.
- Payment history
- Your record of paying on time. It's the largest part of a credit score.
- Credit utilization
- How much of your card limits you're using. Lower is better for your score.
- Thin file
- Little or no credit history yet — not enough for a score. A credit-builder loan can start one.
- Delinquent
- Behind on a payment — usually 30 or more days late. It's reported and lowers your score.
- Secured card
- A credit card backed by a refundable deposit. See secured cards.
- Credit-builder loan
- A loan you pay first and receive at the end. It builds payment history. See credit-builder loans.
- Hard inquiry
- A lender's credit check when you apply. It can dip your score a little for a while.
Cash & banking
- Earned wage access
- Taking pay you've already earned, a few days early. See earned wage access.
- Cash advance
- A small, short-term advance against your next paycheck or earned pay, usually for a fee.
- Overdraft fee
- A charge for spending more than your balance. Fee-free banking avoids it.
- Payday loan
- A short-term, high-cost loan due on your next payday. See payday loans.
- Rollover
- Extending a payday loan for another fee when you can't repay it. It's how the cost piles up.
Debt
- Debt management plan (DMP)
- A plan through a nonprofit counselor: one monthly payment, often at lower rates. See credit counseling.
- Debt consolidation
- Combining debts into one loan or card, ideally at a lower rate. See consolidation.
- Debt settlement
- Paying a lender less than you owe to close the debt. See debt settlement.
- Forgiven debt
- The part of a debt a lender writes off. The IRS usually treats it as taxable income.
- Secured vs. unsecured debt
- Secured debt is backed by property (a car or house). Unsecured debt isn't (cards, medical bills).
- Chapter 7 / Chapter 13
- The two common consumer bankruptcies: Chapter 7 clears most unsecured debt; Chapter 13 sets a repayment plan. See bankruptcy.
- Automatic stay
- A court order in bankruptcy that pauses collection calls and most lawsuits right away.