Borrowing Jargon Buster

Personal finance is full of terms and words that can seem confusing and complicated. 

To help you make sense of all this money-related jargon, we’ve compiled a list of some of the most common terms related to borrowing you are likely to come across, with plain English alternatives.

Borrowing

Jargon: APR (Annual Percentage Rate)

Plain English: The annual cost of borrowing money, including interest and fees, expressed as a percentage.

Jargon: Overdraft

Plain English: Borrowing money from your bank when your account balance goes below zero, often with interest charges.

Jargon: Credit Score

Plain English: A numerical rating that reflects your creditworthiness as a borrower.

Jargon: Mortgage

Plain English: A loan used to buy a home, where the property serves as collateral.