ADVERTISEMENT

Glossary

What is a College Savings Plan?

A college savings plan is the same as a 529 savings plan, or a savings plan where money can be invested to grow on a tax-deferred basis and withdrawn free from federal and potentially state taxes if used for "qualified" higher education expenses,...

What is Compound Interest?

Compound interest is interest that accrues on an amount of money plus the accumulated interest on that money. Compound interest helps money grow faster than simple interest which is calculated as a percentage of only the original amount.    See...

What is a Coverdell Education Savings Account (ESA)?

Formerly called an "Education IRA," a Coverdell Education Savings Account allows families to save money on a tax-deferred basis for primary and secondary education expenses for children under the age of 18. However, the maximum annual contribution...

What is a CPA?

A Certified Public Accountant (CPA) is a tax and accounting professional who has completed a certain amount of education and passed the official CPA exam and received state certification to get paid to practice. CPAs are required to complete a...

What is a Credit Bureau?

Also referred to as a "consumer reporting agency," a credit bureau collects and sells information about the creditworthiness of individuals. A credit bureau consider's a person's spending habits and history and assigns them a credit score that can...

What is a Credit Card?

A credit card is a tangible card issued by financial institutions to consumers for purchases using borrowed money that they are expected to pay back. Any balance not repaid in full by a specified period of time may be charged interest, typically...

What is a Credit Limit?

Credit limit is the maximum amount of credit that a financial institution is willing to extend to a customer.   See Also: How I Ditched My Debt For Good Is Your Debt Ratio Healthy? Ask An Advisor: Help! I'm Running Out of Money 5 Best Cash-Back...

What is a Credit Report?

A credit report is a report that typically contains a person's credit score and detailed information on their financial history, including open and closed credit accounts, loans, bankruptcies, late payments and any recent credit inquiries. Credit...

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

© Copyright DailyWorth 2014

ADVERTISEMENT