Credit
The ability to borrow money with the promise to repay it later.
Credit
This type of tax is taken directly out of your paycheck.
Income tax.
This acronym identifies the government agency that collects federal taxes and uses W-2 information to verify income.
IRS
This is the original amount of money borrowed, not including interest.
Principal
This number summarizes how responsibly someone has used credit in the past.
Credit Score
This form reports how much you earned in wages from an employer during the year.
W-2
This term describes the total amount of money you earn before any taxes or deductions are taken out.
Gross pay.
This factor has the biggest impact on how much you end up paying over the life of a loan, even if monthly payments look small.
Interest rate
Paying only the minimum amount due on a credit card usually causes this to happen.
You pay more interest over time.
This is a set amount of income that can be subtracted before taxes are calculated, reducing how much income is taxed.
Standard deduction
This term describes the income ranges that are taxed at different rates.
Tax bracket.
A borrower with a lower credit score pays more over the life of a loan primarily because of this.
Higher interest rate
A credit score may measure from ______ - _______.
300-850
This payroll tax helps fund Social Security and Medicare.
FICA tax.
This term describes the money you actually receive after taxes and deductions are taken out.
Net pay
This type of loan requires something valuable, like a car or house, as security.
Secured or collateral loan.
This factor accounts for 35% of your overall credit score.
Payment history - Pay your bills on time!
*Extra 100* - Ms. Bri's credit score always hovers in the ______ to _______ range.
This tax is charged on earnings from investments like stocks or real estate sales.
Capital gains tax.
This tax form tells your employer how much federal income tax to withhold from your paycheck.
W-4
This loan feature allows borrowers to temporarily pause payments, often increasing total interest paid.