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THE ADULTFILES
The adulting dictionary

Glossary

Short, plain definitions of the words on your lease, pay stub and credit report, linked to the files and tools that use them.

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Glossary

Actual cash value

Actual cash value pays what your stuff is worth today, after wear and tear, not what it costs to buy new. A 4-year-old $1,200 laptop: maybe $400.

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MONEY
Glossary

Authorized user

An authorized user is added to someone else’s card, and that account can show up on their report. A boost, not a whole credit history.

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CAREER
Glossary

Behavioral interview question

Behavioral interview questions and the STAR method get their own file. This entry will be filled in when that file is published.

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MONEY
Glossary

Cash advance

A cash advance is cash from a credit card. There’s usually a fee, often a higher interest rate, and no grace period: interest starts the moment you withdraw.

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MONEY
Glossary

Credit bureau

Credit bureaus are the companies that keep your credit file. The US has three big ones; Canada has two, Equifax and TransUnion. Your reports from them are free.

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MONEY
Glossary

Credit dispute

A credit dispute is how you fix something wrong on your credit report: free, with the credit bureau, online or by mail, with proof. US bureaus have 30 days.

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MONEY
Glossary

Credit freeze

A credit freeze stops anyone opening credit in your name. It’s free, and it doesn’t affect your credit score at all.

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MONEY
Glossary

Credit report

Your credit report is your money history: every card and loan, what you owe, and whether you paid on time. Credit bureaus keep it. Checking it never hurts.

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MONEY
Glossary

Credit score

A credit score is a number worked out from your credit report. No history, no number: no score is blank, not bad. Good is 670+ (US), 660+ (Canada).

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MONEY
Glossary

Credit utilization

Credit utilization is how much of your limit you’re using. It’s about 30% of a FICO score. The CFPB’s advice: keep it under 30%; lower is better.

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MONEY
Glossary

Credit-builder loan

A credit-builder loan works backwards: the lender locks the money away, you make small payments, then you get the money. Credit and savings at the same time.

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Glossary

Declarations page

The first page of an insurance policy: it lists what you’re covered for and how much. Check personal property, loss of use and liability.

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Glossary

Deductible

The deductible is the part of a claim you pay first, usually $500 to $2,000. A bigger deductible means a cheaper policy; pick one you could pay tomorrow.

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CAREER
Glossary

Elevator pitch

An elevator pitch is a short spoken summary of you at work. For “tell me about yourself”, Carnegie Mellon says 1–2 minutes.

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MONEY
Glossary

Goodwill letter

A goodwill letter asks a lender to remove an accurate late payment as a courtesy. Best for one mistake on an account in good standing. They don’t have to agree.

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MONEY
Glossary

Grace period

The grace period is the time between your statement and the due date. Pay the full statement balance by the due date and the interest on purchases is zero.

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MONEY
Glossary

Hard inquiry (hard check)

A hard inquiry happens when you apply for credit. For most people one costs less than five FICO points; it stays 2 years in the US, 3–6 years in Canada.

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Glossary

Liability coverage

Liability coverage pays for injury or damage you (or your pet) cause to other people: a guest slips, your dog bites, your tub floods the unit below.

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Glossary

Loss of use

Loss of use (additional living expenses) pays the extra cost of living somewhere else while your place is fixed: the hotel, the meals.

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MONEY
Glossary

Minimum payment

The minimum payment is the least you can pay without a late fee. It does almost nothing about the interest. Pay the statement balance in full when you can.

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CAREER
Glossary

One-way video interview

A one-way video interview is a recorded interview: a question on screen, a timer, and nobody nodding back. Same answer, same shape.

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MONEY
Glossary

Prescreened offer (“pre-approved”)

A “pre-approved” offer means you matched a list the card company bought from the credit bureaus. It’s not approval. In the US, opt out at optoutprescreen.com.

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CAREER
Glossary

Present, past, future

Present, past, future is how career centers describe a good “tell me about yourself” answer. FILE 003 calls it Now, Proof, Next.

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Glossary

Replacement cost

Replacement cost pays what it costs to buy your stuff new today, not its worn-out value. It usually costs only about 10% more than actual cash value.

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MONEY
Glossary

Secured card

A secured card is a real credit card backed by your deposit: the deposit becomes your limit (the CFPB’s example is $500), so you can’t get in over your head.

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MONEY
Glossary

Soft inquiry (soft check)

A soft inquiry, like checking your own credit report or score, never affects your credit score. A hard check is when you apply for credit.

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MONEY
Glossary

Statement balance

Your statement balance is what you owed on the statement closing date. Pay it in full by the due date and you pay $0 interest on purchases.

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Glossary

Subrogation

Subrogation: your insurer pays your claim right away, then chases whoever was at fault for the money. You might even get your deductible back.

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