components of credit
the record of all your past payments and whether they were paid late or on time.
what is payment history?
A report on how likely you are to repay a debt
What is a credit score?
Opening a new line to borrow money whether it be for a house, a car, or everyday purchases
What is opening a new line of credit?
being unable to access new credit when you need it due to a lack of credit history.
What is a thin file?
The sum of all your balances divided by the sum of your card's credit limit.
What is a credit utilization rate?
how much debt you carry in total.
what is amount owed?
consistently paying back debts resulting in a higher chance of being able to take out money and lower interest rates.
What is a high credit score?
A method of raising your credit score by having no current debt.
What is repaying debt?
When legally old enough opening lines of credit
What is building credit at a young age?
When you have the financial resources to make monthly payments.
When is it good to take on credit?
How long you have had accounts opened and how long it's been since you last used the accounts
What is length of history?
a credit score that is below 670.
Opening new lines of credit to increase your credit score.
What is building your credit file?
a high credit score and long credit file reaching back years.
What are the benefits of having credit from a young age?
What is a credit card?
multiple types of loan accounts you hold.
What is Credit mix?
an online service used to check a credit score
What is Credit Karma?
What is missing payments?
lower interest rates and more loan options.
What are benefits of high credit?
The maximum amount of credit a institution would extend to a client.
What is a credit limit?
if you have recently opened a credit line or loan.
What is new Credit?
This is how often you should check your credit report.
What is once a year?
Having a mortgage, car loan, and multiple credit card.
What is having multiple forms of credit?
High interest rates with few credit options
What are the consequences of having low credit?
This number maxes out at 850 and can be as low as 300
What is a max and minimum credit score?