Credit Score
This is used to help you qualify for loans and receive lower interest rates.
What is a credit score
This is the most important part of your credit profile and makes up 35% of your score by showing whether you pay on time.
What is payment history
This is a plan for how you will spend and save your money.
What is a budget
This is money set aside for future use.
What is savings
This is a bank account used for everyday spending and transactions.
What is a checking account
This is the range of credit scores from lowest to highest.
What is 300 to 850
This factor makes up 30% of your score and looks at how much debt you currently have.
What is amounts owed
This rule suggests spending 50% on needs, 30% on wants, and 20% on savings.
What is the 50 30 20 rule
This is money saved specifically for unexpected expenses.
What is an emergency fund
This is a bank account designed to hold money and earn interest.
What is a savings account
Lenders use this to predict how likely you are to repay borrowed money.
What is a credit score
This factor accounts for 15% of your score and is based on how long you have had credit.
What is length of credit history
This type of expense stays the same each month, like rent.
What is a fixed expense
This is when you earn money on both your original amount and the interest already added.
What is compound interest
This card allows you to borrow money from a bank to make purchases.
What is a credit card
This is the average credit score typically needed to rent an apartment.
What is about 650
This factor makes up 10% of your score and looks at the different kinds of credit accounts you have.
What is credit mix
This type of expense can change each month, like groceries or entertainment.
What is a variable expense
This type of account typically earns more interest than a regular savings account but may have limits.
What is a high yield savings account
This card uses money directly from your bank account when making purchases.
What is a debit card
These are the five factors that determine your credit score.
What are payment history, amounts owed, length of credit history, credit mix (Types of credit), and new credit
This factor accounts for 10% of your score and reflects how often you apply for new credit.
What is new credit
This is the amount of money you have left after paying all expenses.
What is net income or disposable income
This is the act of putting money into assets like stocks or bonds to grow wealth over time.
What is investing
This fee is charged when you spend more money than you have in your account.
What is an overdraft fee