Background on Credit
The minimum repayment on revolving credit
What is 3%
The easiest way to establish credit
What is apply for a credit card
Provided by credit bureaus, documents your credit payment history
credit report
The interest rate charged to the best customers
What is the prime rate
This occurs when the identity thief goes through your trash
What is dumpster diving
An example is a line of credit or credit card
What is revolving credit
The period of time during which you are not charged any interest on your purchases
What is Grace Period
It can be used to determine whether a person receives credit
Credit History
A secured mortgage that is subordinate to another loan
What is a second mortgage
This occurs in public places where you can be readily seen or heard by someone standing close by
What is shoulder surfing
This document indicates your assets, liabilities, and net worth
What is personal balance sheet
A credit card that is honoured only by a specific retail establishment
What is a retail credit card
It can cover monthly repayments if a consumer cannot work
What is credit insurance
The financial institution will provide a HELOC for up to this percentage of the home minus any outstanding mortgage balance
What is 80%
This is used to shred items that contain personal information
What is a paper shredder
Examples are you may have difficulty making your payments and making impulse purchases
What are disadvantages of credit
Is responsible for an unpaid balance if the borrower does not repay the loan
What is co-signer
It should be reviewed at least once a year for accuracy
What is Credit Report
Is determined by subtracting the amount owed on the home from its market value
What is home equity
This occurs when your credit card or debit card number is stolen
What is skimming
Typically, will receive high interest rates if this is determined
What is a poor credit score
The examples are, establish a good credit history, eliminate the need for carrying cash and earn additional benefits
What are the advantages of credit cards
The repayment is deferred
What is a student loan
HELOC's use this type of interest rate that changes periodically
What is a variable interest rate
The cancellation of credit cards is a response to this
What is identity theft