Taking care of your financial situation is extremely valuable. Here are some advices related to finance terms. Prepaid cards require the cardholder to load money onto the card before the card can be used. Purchases are withdrawn from the card’s balance. The spending limit does not renew until more money is loaded onto the card. Prepaid cards do not have finance charges or minimum payments because the balance is withdrawn from the deposit you’ve made. These cards are not actually credit cards, and they don’t directly help you rebuild your credit score. Prepaid cards are similar to debit cards, but are not tied to a checking account. A lot of people use them as a way to stay within budget.
What Is a Payday Loan? A payday loan is a type of short-term borrowing where a lender will extend high interest credit based on a borrower’s income and credit profile. A payday loan’s principal is typically a portion of a borrower’s next paycheck. These loans charge high interest rates for short-term immediate credit. These loans are also called cash advance loans or check advance loans.
Terms: Asset: An item of a tangible or intangible nature that has value or benefit, such as the capacity to generate revenue or interest. An example of a tangible asset is real estate and an intangible asset is a business brand name.
Credit score: A credit score is a numeric expression that indicates how credit worthy someone is. The score is created using an analysis of a person’s credit history as provided by past creditors. The score is held by a credit bureau.
For our finnish readers here is a resource that you might find useful : Payday loans guide. 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.