Glossary
Co-signer
GeneralA person who signs a loan with you and agrees to repay it if you cannot. Having a co-signer can help you qualify for credit, but it puts real financial risk on the other person if payments are missed.
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Secured debt
A loan backed by collateral — something the lender can take if you do not repay. Mortgages and car loans are common examples. Secured loans typically have lower interest rates because the lender has less risk.
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Credit score
A number between 300 and 900 that represents how reliably you have handled borrowed money. Lenders, landlords, and some employers check this score. Paying bills on time and keeping balances low are the two biggest factors.