Balance

The total amount of money owed to a lender or creditor.

Balance transfer

This is when the balance from one credit card is transferred to another, so the cardholder can take advantage of a lower APR.

Balloon payment
A large payment due at the end of a loan. This type of payment is often associated with second mortgages and is known for being the largest payment. This payment usually ends the loan.

Bank card

A card, issued through a bank, that is used to credit accounts.

Bankruptcy
A legal procedure for people who are unable to pay off their debts. Bankruptcy is usually a last resort, however, because it stays on your credit report for ten years. When someone declares bankruptcy, their assets are protected and used to pay a portion of each debt owed.

Business version of credit report
This is the version of a consumer's credit report that a business receives. The business version of a credit report is abbreviated and does not include promotional inquiries or account reviews.