◆ 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 a FICO Score?The most widely used credit score model, developed by Fair Isaac Corporation. Used by 90% of lenders.Read the breakdown →Deep Dives
◆ DEBT & CREDIT
What Is a Credit Score?
A credit score is a three-digit prediction of your borrowing behavior. Here's how it's built, what each factor actually does, and how to move yours.
◆ 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
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
APR vs. APY: What the Two Rates Actually Tell You
APR is the cost of borrowing; APY is the return on saving. The difference is compounding, and knowing which to use will change every rate comparison you make.
◆ DEBT & CREDIT
How Credit Scores Actually Work — The Five-Factor Formula
Your credit score isn't a mystery — it's a formula. Understanding the five factors that drive it turns credit-building from guesswork into a straightforward process.
◆ 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
Good Debt vs. Bad Debt
Not all debt is equal. Learn which debts build wealth and which destroy it.
◆ DEBT & CREDIT
Debt Avalanche vs. Debt Snowball — A Side-by-Side Breakdown
The avalanche saves more money. The snowball keeps more people on track. Here's exactly how each works and how to choose the right strategy for your psychology.
◆ 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.
Quick Answers
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 Credit Utilization?
The percentage of your available credit that you're currently using. High utilization hurts credit scores.
Read more →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 Principal?
The original amount borrowed. Interest is charged on the principal, and principal decreases as you make payments.
Read more →