◆ PERSONAL FINANCE
Credit & Debt
Borrowing on your terms — credit scores, loans, and getting free of debt.
20 articles
In this sectionDebt & Credit 20
◆ THE COVER STORYWhat Is Credit Utilization?The percentage of your available credit that you're currently using. High utilization hurts credit scores.Read the breakdown →Deep Dives
◆ DEBT & CREDIT
Good Debt vs. Bad Debt
Not all debt is equal. Learn which debts build wealth and which destroy it.
◆ DEBT & CREDIT
What Is Amortization?
How loan amortization works: early payments are mostly interest, extra principal payments save thousands, and negative amortization is the trap to avoid.
◆ DEBT & CREDIT
Getting Out of Debt: A Real Plan That Lasts Past Month 4
A practical framework for paying off debt: assess what you owe, pick a strategy, survive the hard middle, and redirect the freed cash toward wealth.
◆ DEBT & CREDIT
Your Debt-to-Income Ratio: What Lenders Actually Measure
Lenders care more about your DTI than your credit score when approving a mortgage. Here is how the ratio works, where the thresholds sit, and how to move yours.
◆ DEBT & CREDIT
Debt Avalanche vs. Debt Snowball: Which Strategy Actually Gets You Out
One method saves the most interest. The other saves the most people. Here's how to pick the one that actually works for you.
◆ DEBT & CREDIT
Student Loans: What You Owe, What Your Options Are, and How to Think About It
Federal vs. private loans, every repayment path, and the real math on whether to pay off fast or invest instead.
◆ DEBT & CREDIT
How to Choose the Right Bank Account
Most people still use the account they opened in college. Here's what it's actually costing them, and how to pick better.
◆ DEBT & CREDIT
What Is an Interest Rate?
An interest rate is the price of borrowing money. How the Fed sets it, what moves your personal rate, and what a 1-point difference costs on a $300k mortgage.
◆ DEBT & CREDIT
Building Credit From Scratch: How to Go From Zero to Good in 12 Months
No credit history is harder than bad credit. Here are the three fastest paths from zero to a score lenders will work with.
Quick Answers
What Is APR? The True Cost of Borrowing, Explained
APR is the yearly cost of borrowing, including fees. Learn how APR works, how it differs from the interest rate, and how to use it to compare loans.
Read more →What Is a Balance Transfer?
Moving debt from one credit card to another, typically to a card offering lower APR to reduce interest costs.
Read more →What Is Principal?
The original amount borrowed. Interest is charged on the principal, and principal decreases as you make payments.
Read more →What Is a FICO Score?
The most widely used credit score model, developed by Fair Isaac Corporation. Used by 90% of lenders.
Read more →