Credit Card Basics
Maximum amount you can borrow on a credit card.
What is Credit Limit?
Biggest factor in your credit score.
What is Payment History?
Yearly cost of borrowing money.
What is APR
Paying this avoids interest entirely.
What is Full Statement Balance?
This three-digit number, found on your credit report.
What is Credit Score?
Minimum amount due each month.
What is Minimum Payment?
How much of your available credit you use.
What is credit utilization?
Fee for missing a payment.
What is Late Fee?
Making this payment on time every month is the simplest way to maintain a good credit score.
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What is your credit card payment? Or, What is minimum payment?
These three nationwide companies—Experian, Equifax, and TransUnion—create the documents that track your credit history.
What are Credit Bureaus?
Card requiring a deposit to build credit.
What is Secured Credit Card?
What increases when you apply for multiple cards. Answer: Hard inquiries / new credit.
What are Hard Inquiries/new credit?
Interest rate that changes over time.
What is variable APR?
Doing this before applying for a loan or credit card helps you spot errors and protect your score from unfair damage
What is checking your credit report?
Your credit report shows how much of your available credit you are using, known by this two‑word term.
What is Credit Utilization?
Time to pay before interest is charged.
What is Grace Period?
Having loans and credit cards helps this.
What is Credit Mix?
Extra cost for taking out cash with your card.
What is Cash Advance Fee?
This financial safety step protects your credit by preventing new accounts from being opened in your name without your permission.
What is Credit Freeze?
Federal law allows you to get one free credit report every year from this website.
What is AnnualCreditReport.com
Three‑digit security number used online.
What is CVV/CVC code?
Measures how long your accounts have been open.
What is length of credit history?
Interest charged on top of interest. Answer: Compound interest.
What is Compound Interest?
This long‑term credit strategy involves keeping older accounts open—even if you rarely use them—because doing so helps maintain this major credit score factor.
What is length of credit history?
This negative mark appears on your credit report when you fail to make payments for 30, 60, or 90 days.
What is a delinquency?