Taking care of your money is extremely important. Here are some advices related to finance terms. Standard credit cards are referred to as “plain-vanilla” credit cards because they offer no frills or rewards. They’re also relatively easy to understand. You might choose this type of credit card if you want a card that isn’t complicated and you’re not interested in earning rewards. The standard credit card allows you to have a revolving balance up to a certain credit limit. Credit is used up when you make a purchase and then more credit is made available once you’ve made a payment. A finance charge is applied to outstanding balances at the end of each month. Credit cards have a minimum payment that must be paid by a certain due date to avoid late-payment penalties.

Obtaining a Payday Loan: Payday loan providers are typically small credit merchants with physical locations that allow onsite credit applications and approval. Some payday loan services may also be available through online lenders. To complete a payday loan application, a borrower must provide paystubs from their employer showing their current levels of income. Payday lenders often base their loan principal on a percentage of the borrower’s predicted short-term income. Many also use a borrower’s wages as collateral. Other factors influencing the loan terms include a borrower’s credit score and credit history, which is obtained from a hard credit pull at the time of application.

Terms: Account : An arrangement with a financial institution for the debit and credit of funds; also the record or statement of these transactions. Businesses may use an account structure with another party to keep track of goods or services rendered and payments owing.

Balance transfer: The movement of the amount owing from one account to another account. A credit card balance transfer, for example, involves the movement of the amount owed on one or more credit cards to another account or institution, usually for the purposes of consolidating debt and/or taking advantage of better interest rates and/or payment terms.

For our finnish readers here is a resource that you might find useful : General finance advisor. Mortgage, or home loan: An agreement between a lender and a borrower who is a property owner where the property is used as collateral or security for an amount borrowed to purchase it.

EBITDA: EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization and is calculated by subtracting operating expenses from revenue and adding back depreciation and amortization to operating profit (aka EBIT). EBITDA can be used as a proxy for free cash flow (FCF) because it accounts for the non-cash expenses of depreciation and amortization. On the income statement, EBITDA is a line item above net income that excludes other non-operating expenses, as well as interest expenses and taxes. Some could argue that compared to net income, EBITDA paints a rawer image of profitability. While some proponents of EBITDA argue that it’s a less-complicated look at a company’s financial health, many critics state that it oversimplifies earnings, which can create misleading values and measurements of company profitability.