Financial Vocabulary

#61

Credit history

Example sentences

1. He has a strong credit history because he pays on time.
2. A short credit history may make borrowing harder.
3. The lender studied her credit history.

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#62

Credit utilization ratio

Example sentences

1. Her credit utilization ratio fell after she paid the card.
2. A low credit utilization ratio can support a good credit score.
3. He checks his credit utilization ratio each month.

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#63

Annual percentage rate

Example sentences

1. The card has an annual percentage rate of 18%.
2. She compared the annual percentage rate on two loans.
3. A lower annual percentage rate can reduce borrowing costs.

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#64

Finance charge

Example sentences

1. The monthly statement showed a $12 finance charge.
2. A finance charge is part of the cost of borrowing.
3. He paid the balance early to reduce the finance charge.

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#65

Minimum payment

Example sentences

1. She made the minimum payment on her credit card.
2. Paying only the minimum payment can keep debt for longer.
3. The statement shows the minimum payment due.

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#66

Installment loan

Example sentences

1. He repays the car with an installment loan.
2. An installment loan has regular monthly payments.
3. The final installment loan payment is due in June.

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#67

Revolving credit

Example sentences

1. A credit card is a common type of revolving credit.
2. Revolving credit can be used again after it is repaid.
3. She manages her revolving credit carefully.

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#68

Line of credit

Example sentences

1. The business opened a line of credit for short-term costs.
2. He borrowed $2,000 from his line of credit.
3. A line of credit gives access to money when needed.

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#69

Default

Example sentences

1. The company went into default after missing many payments.
2. A loan default can damage a credit score.
3. The bank contacted the borrower before declaring default.

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#70

Delinquency

Example sentences

1. The late loan entered delinquency after 30 days.
2. Delinquency can lead to extra fees.
3. The borrower paid quickly to end the delinquency.

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#71

Late fee

Example sentences

1. The landlord charged a late fee for the delayed rent.
2. She paid on time to avoid a late fee.
3. The credit card statement included a late fee.

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#72

Grace period

Example sentences

1. The card gives a 21-day grace period.
2. He paid during the grace period and avoided interest.
3. The grace period ends next Friday.

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#73

Debt consolidation

Example sentences

1. She used debt consolidation to combine three loans.
2. Debt consolidation gave him one monthly payment.
3. A lower rate can make debt consolidation useful.

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#74

Refinancing

Example sentences

1. They are refinancing their mortgage at a lower rate.
2. Refinancing may reduce the monthly payment.
3. She compared the fees before refinancing the loan.

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#75

Amortization

Example sentences

1. The loan's amortization lasts for 20 years.
2. The schedule shows how amortization reduces the balance.
3. Early payments include more interest during amortization.

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#76

Accounting

Example sentences

1. Accounting helps the company record its money activities.
2. She studied accounting at college.
3. Good accounting supports clear business decisions.

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#77

Bookkeeping

Example sentences

1. He does the shop's bookkeeping every Friday.
2. Bookkeeping records sales, costs, and payments.
3. The business uses software for bookkeeping.

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#78

Accrual accounting

Example sentences

1. The company uses accrual accounting for its reports.
2. Accrual accounting records revenue when it is earned.
3. Under accrual accounting, unpaid expenses can still be recorded.

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#79

Cash accounting

Example sentences

1. The small shop uses cash accounting.
2. Cash accounting records income when money is received.
3. Under cash accounting, the sale appears after the customer pays.

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#80

Debit entry

Example sentences

1. The accountant made a debit entry for the new equipment.
2. A debit entry increased the cash account.
3. She checked the debit entry for accuracy.

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