Plain-English definitions of the store credit, buy-now-pay-later and consumer finance terms used across our Stoneberry guides. Tap a letter to jump.
A
APR (Annual Percentage Rate)
The yearly cost of borrowing money, shown as a percentage. Includes interest and some fees. The higher the APR, the more a balance costs you per year. On a store credit account like Stoneberry Credit, the APR appears on your account agreement and every monthly statement.
Available credit
The amount you can still spend on a revolving credit account. Available credit equals your credit limit minus your current balance minus any orders that have not shipped yet. Pending orders reduce available credit right away.
Autopay
An automatic recurring payment set up from a bank account or debit card. Prevents late fees but gives you less control over timing. Always confirm the payment date fits your paycheck cycle before enrolling.
B
Balance
The amount of money you currently owe on a credit account. The statement balance is what you owed at the last billing cycle. The current balance includes any new charges since then.
Buy now, pay later (BNPL)
A broad term for financing a purchase at checkout. Covers pay-in-four apps like Afterpay, Klarna and Affirm, long-term installment plans, and store credit accounts like Stoneberry Credit. Terms vary widely between products.
C
Catalog credit
A store credit account offered by catalog retailers such as Stoneberry, Fingerhut and Montgomery Ward. Usable only within that retailer’s store network. Often marketed to shoppers with fair or limited credit.
Charge-off
What happens when a credit account is 180 days past due. The lender writes it off as a loss, but you still owe the money. Charge-offs stay on your credit report for seven years and damage your score for the whole period.
Closed-loop credit
A credit account that works only at one retailer or a small group of related retailers. Store cards and store credit accounts like Stoneberry Credit are closed-loop. You cannot use closed-loop credit at other merchants or for cash withdrawals.
CFPB
The Consumer Financial Protection Bureau. A U.S. federal agency that regulates consumer financial products and accepts complaints about lenders, banks and credit services at consumerfinance.gov.
Credit bureau
A company that collects and reports your credit history to lenders. The three major U.S. credit bureaus are Experian, Equifax and TransUnion. You can pull one free report from each per year at annualcreditreport.com.
Credit limit
The maximum amount a lender will let you borrow on a revolving credit account. On Stoneberry Credit, your limit is set when you pre-qualify. Orders above the available portion of your limit get declined.
Credit utilization
The percent of your credit limit you are currently using. Calculated as balance divided by limit. Lower utilization helps your credit score. Most credit experts suggest keeping utilization under thirty percent.
D
Down payment
An upfront payment made at the time of an order, reducing the amount financed. Some Stoneberry orders are approved only if the shopper agrees to a down payment, especially on larger orders or newer accounts.
F
Fair credit
A FICO score roughly in the 580 to 669 range. Below prime but above subprime. Store credit accounts, secured credit cards and credit-builder loans are often marketed to fair-credit shoppers.
FICO score
The most widely used credit score in the United States. Ranges from 300 to 850. Based on payment history, amounts owed, length of credit history, credit mix and new credit. Lenders use it to decide approval and pricing.
FTC
The Federal Trade Commission. Enforces U.S. consumer protection law. Publishes the Endorsement Guides that require clear disclosure of paid promotions and affiliate relationships, including on review sites.
G
Grace period
A window after your statement date when you can pay the full balance without being charged interest. Most credit cards offer a 21 to 25 day grace period. Store credit accounts like Stoneberry Credit typically do not have a grace period on carried balances.
H
Hard inquiry
A credit check that shows on your credit report and can lower your score by a few points for up to twelve months. Full credit applications trigger hard inquiries. Pre-qualification tools usually do not.
I
Installment credit
A loan with a fixed term and a set monthly payment. Car loans, mortgages, personal loans and student loans are installment credit. Different from revolving credit, which has an ongoing credit limit you can reuse.
Interest
The cost of borrowing money, shown as a percentage of your balance. On revolving accounts, interest is charged each billing cycle on any balance you carry past the due date. Paying only the minimum means most of your payment covers interest, not principal.
L
Late fee
A charge added to your account when a payment arrives after the due date. Late fees are set in your account agreement, often twenty-five to forty dollars. Multiple late payments can also trigger a higher penalty APR.
M
Minimum payment
The smallest amount you can pay each month without being marked late. Stoneberry advertises monthly payments starting at $5.99. Paying only the minimum stretches payoff by years and multiplies the total interest you pay.
N
Nonprofit credit counseling
A free or low-cost service offered by accredited nonprofit agencies. Counselors review your budget, discuss debt-management options and may negotiate with creditors on your behalf. The CFPB explains how to find a reputable agency.
P
Pay-in-four
A short-term BNPL plan that splits one purchase into four payments over about six weeks, usually without interest if every payment is on time. Afterpay, Klarna and Affirm Pay in 4 are common examples. Different from long-term store credit.
Pre-qualification
A soft credit check that estimates whether you would be approved for a product, and for how much. Does not affect your credit score. Not a guarantee of final approval; each order can still be reviewed.
R
Revolving credit
A credit account with an ongoing limit you can borrow against repeatedly as you pay the balance down. Credit cards, store credit accounts and home equity lines of credit are revolving. Opposite of installment credit.
S
Secured credit card
A credit card backed by a cash deposit, usually equal to the credit limit. The deposit protects the lender if you default. Secured cards report to the bureaus and can help build credit, often at a lower cost than catalog store credit.
Soft inquiry
A credit check that does not affect your credit score. Pre-qualification tools, credit monitoring services and account reviews by current lenders are soft inquiries. Soft inquiries are only visible to you on your credit report.
Store credit
A credit account offered by a specific retailer, usable only within that retailer’s network. Can be a store credit card (like a Target REDcard) or a dedicated store credit account like Stoneberry Credit. Closed-loop and usually higher cost than general-purpose credit.
U
Usury
The practice of charging an interest rate above the legal maximum in a given state. State usury laws cap how much lenders can charge. Some states, including New York, Vermont and West Virginia, have strict caps that limit which loan products are offered.