Credit Score
what is credit score
what is A credit score is a three-digit number, typically between 300 and 850, that acts as a financial report card to measure your creditworthiness
what is debt
what is having a loan not paid back yet.
What is a credit card
What is a metal or plastic card that gives you money from banks for you to pay stuff and at the end of the month we have to pay it back sometimes with intrest if you don't pay back.
This is a sum of money that is borrowed and is expected to be paid back with interest.
What is a Loan?
If you want to buy this "first set of wheels" when you're older, a lender will check your credit to see if you can handle the monthly payments.
What is a Car?
The usual highest score for credit scores
what is 850
This is the simple definition of debt: it is money that you ___ but haven't paid back yet.
What is Owed?
This is the specific "fee" a credit card company charges you for the privilege of borrowing their money if you don't pay your bill in full
What is Interest
This is the term for an individual, bank, or financial institution that allows you to borrow their money.
What is a Lender?
Even if you aren't borrowing money, these people often check your credit report to see if you’ll be a responsible tenant in their building.
Who is a Landlord?
his "color" of a credit score (usually above 700-750) indicates to a bank that you are a low-risk borrower and deserve the best interest rates.(rhymes with good)
what is good
This type of "Good Debt" is an investment in yourself that can help you earn a higher salary in the future.
What are Student Loans
Many credit cards offer these "bonuses," such as 1% back on purchases or airline miles, to encourage you to use their card.
What are Rewards
This term refers to the original amount of money borrowed, separate from any interest or fees.
What is Principal?
This is the long-term loan most people use to buy a house; a better credit score can save you thousands of dollars on one of these.
What is a Mortgage?
Accounting for 35% of your total score, this is the most important factor used in calculating your FICO score
Payment History?
If you borrow money to buy a car or house, the bank can take the item back if you don't pay. This is called ___ debt.
What is Secured Debt?
Unlike a debit card, credit cards offer better protection against this illegal act, where someone steals your card information to buy things.
What is Fraud?
Equifax, Experian, and TransUnion are the three main versions of these companies that collect your credit data
What is a Credit Bureau?
Some of these may check your credit during the hiring process to see if you are trustworthy enough to handle their money or data.
Who are Employers?
This term refers to the percentage of your total available credit that you are currently using; experts recommend keeping it below 30%.
What is Credit Utilization?
This "Bad Debt" usually has the highest interest rates and is used to buy things that lose value, like clothes or fast food.
What is Credit Card Debt?
This is the maximum amount of money a credit card company allows you to spend on your card before it gets declined.
What is a Credit Limit?
One of the "5 Cs of Credit," this refers to your ability to repay a loan based on your income and current expenses.
also can be known as the max amount of things you can hold
What is Capacity?
This is a legal process that stays on your credit report for up to 10 years and tells future lenders that you were completely unable to pay back your debts.
What is Bankruptcy?