Credit Basics
Credit Cards
Building Credit
Different types of Credit
Credit Scores and reports
100
What is credit?
The ability to borrow money with the promise to repay it later.
100
What is the main purpose of a credit card?
To borrow money for purchases and pay it back later.
100
Name one way to build credit.
Paying bills on time.
100
What is the most common type or credit?
Having a credit card?
100
What is considered a good credit score?
Generally, 670 or higher.
200
What is a credit score?
A number that represents your creditworthiness.
200
What happens if you only pay the minimum balance?
You will be charged interest and take longer to pay it off.
200
Why is paying on time important?
It has a big impact on your credit score.
200
What is a loan?
Money you are borrowing and paying back later.
200
How often can you check your credit report for free?
Once a year (from each bureau).
300
What does lender check before giving you credit?
A lender checks your credit history or credit report.
300
What is an interest rate?
The cost of borrowing money, expressed as a percentage.
300
What is a secured credit card?
A credit card backed by a cash deposit.
300
What is a mortgage?
Money you are borrowing and pay back later.
300
Name one thing that lowers your credit score?
Late payments, high balances, or too many applications (to many credit cards opened up with different companies at once).
400
What organization creates your credit score?
Credit Bureaus:
Experian, Equifax, TransUnion
400
What is a credit limit?
The maximum amount you can borrow on a card.
400
What is credit utilization?
How much credit you use compared to your limit.
400
Many college students don't have the financial stability to pay for college upfront. Some students may end up taking out a?
Loan
400
What is identity theft?
When someone uses your information to open accounts.
500
What is a credit report?
A detailed record of your borrowing and repayment history.
500
What happens if you exceed your credit limit?
Fees and possible damage to your credit score.
500
What is a good credit utilization percentage?
Usually below 30%.
500
Some individuals may not have the financial stability to pay to buy a new house upfront, they will take out a?
Mortgage
500
What should you do if you find an error on your credit report?
Report/dispute it with the credit bureau.