Brex Learning Center



Capital refers to the basic financial assets of an individual or business. This can include cash and funds held in deposit accounts, as well as any physical equipment, property, or facilities with value in producing revenue and storing goods. Capital can also sometimes include credits, patents, promises, goodwill, and franchises. Any materials used during the manufacturing process do not count as capital.

Charge Card

A charge card is an electronic payment card that does not charge the cardholder any interest. It allows holders to make purchases which are paid for by the issuer. The cardholder must then repay the full balance by a set due date. If they fail to do so, then the cardholder is subject to late fees and restrictions. Charge cards can come with generous rewards and uncapped spending limits, but can also include high annual fees.


A charge-off is the balance on a credit obligation that a lender deems unlikely to be repaid. This is due to the borrower becoming severely delinquent on the debt over a period of time. Creditors tend to make this declaration after six months of no payments. This does not mean that the lender has written off the debt entirely.

Checking Account

A checking account is a deposit account that is subject to withdrawals by check. They are also known as demand accounts or transactional accounts. Account holders can access them by other methods too, such as electronic debits and automated teller machines. They often allow for unlimited deposits and numerous withdrawals.


Collateral refers to assets that a lender accepts from a borrower to secure a loan or other type of credit. The type of collateral varies by the lending institution and other variables. If the borrower defaults on payments, the collateral becomes subject to seizure by the lender, who can then resell it to recoup any losses.

Corporate Card

A corporate card, also known as a commercial card, is a credit card that an established company issues to its employees. This allows employees to charge authorized expenses to the business instead of funding them with their own card or cash. They also make it easier for the company to manage expenses and may include rewards, such as frequent flyer miles.


A cosigner is a person who signs a promissory note to guarantee a loan for another borrower. Also known as a comaker, they are jointly liable for repayment of the loan with the primary borrower. As they act as surety to the lender if the primary borrower defaults, a cosigner can make it possible for a borrower to obtain better loan terms and an increased amount of principal.

Credit Bureau

A credit bureau is an agency that researches and collects individual credit information and sells it to creditors for a fee. They are also known as consumer reporting agencies and credit reporting agencies. Creditors then use the information when deciding on granting loans or other forms of credit. These creditors can include banks, credit card providers, and mortgage lenders. There are three major credit bureaus in the U.S.: Experian, Equifax, and TransUnion.

Credit Card Fraud

Credit card fraud is when a fraudster uses another person's credit card to make unauthorized transactions. There are several ways credit card fraud can occur. Common examples include the unauthorized use of a lost or stolen credit card, theft of credit card details, counterfeiting credit cards, and acquiring another person's card via mail interception.

Credit Limit

A credit limit is the maximum amount of credit that a financial institution has made available to the account holder of a credit card or other line of credit account. A lender will set this credit limit based on information provided by the applicant. Factors that a lender will take into consideration include their credit history, income, assets, equity, and debt.

Credit Report

A credit report is a comprehensive compilation of an individual's or business' credit history. Credit bureaus prepare credit reports based on the financial information they collect, including borrowing history, credit inquiries, and payment behavior. While similar, reports by different credit bureaus will differ. Lenders use credit reports by one or more bureau to determine the creditworthiness of a loan applicant. This information helps the lender decide whether to extend credit to the applicant and on what terms.

Credit Score

A credit score is a number that ranges between 300 and 850. It indicates the creditworthiness of an individual or business based on their credit history. The higher the credit score, the more financially reliable the individual or business is considered to be. Lenders use credit scores to evaluate how likely an applicant is to make repayments on time and, therefore, whether or not to extend credit to them.


Creditworthiness generally means that an individual has an established and acceptable credit history. It is how lenders evaluate credit applicants to determine if they are likely to be a responsible borrower. If an applicant is creditworthy, then it is more likely that a lender will accept them for new credit. The rating required by a lender for an applicant to be creditworthy does vary. Several factors affect creditworthiness, including credit rating, repayment history, income, residence, and employment history. Some lenders also take the number of liabilities and available assets that an individual has into consideration.