Credit Score
Also called: FICO, FICO score, VantageScore, credit rating
A number that shows how well you pay back money you borrow. The most common kind goes from 300 to 850, and higher is better.
Example
Your friend pays every bill on time, so her score is high and she gets a lower rate on her car loan.
Why it matters
Paying on time, every time, is the biggest thing you can do for your score.
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Collections
When a bill is not paid for a long time, the company may give or sell it to a debt collector. A debt collector is someone whose job is to get that money from you.
Credit Card
A card that lets you borrow money from a bank to pay for things. If you don't pay it all back each month, you will owe interest.
Debt
Money you owe to someone. You have to pay it back, and often you pay extra on top.
Minimum Payment
The smallest amount you must pay on a bill each month to avoid a late fee. The rest of what you owe keeps growing with interest.
For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.