Terminology
The ability to obtain money from a lender with the agreement to repay the amount later with additional interest charges. Example: buy something now and pay for it later.
What is borrowing?
This type includes a fixed rate and term where payments are fixed over a period of time, such as a vehicle loan or mortgage.
What is an installment loan?
This number is based on information provided in your credit report using factors such as credit card utilization or on time payment history?
What is a credit score?
How old do you need to be to enter a legally binding contract such as a loan with a bank?
What is 18 years old?
The ability to borrow money when applying for a loan with a passing score and on time payment history.
What is good credit?
What is revolving?
Name the credit score numerical range given from lowest to highest by the credit bureaus.
What is 300 - 850?
True or False: Your parents can CO-SIGN a loan for you when you are 17 years old.
What is False?
Money you owe a person or business, such a loan, utility bill or credit card bill.
What is debt?
Term used for something that is pledged as security for repayment of a loan such as a car title or cash.
What is collateral?
How many credit bureaus are there?
Three (Equifax, Transunion, Experian)
This term is used to define less than 3 active tradelines with less than 2 years history reported to credit bureau.
What is limited credit?
Term used for secondary applicant when applying for a loan jointly. Using both borrowers' income for the household.
What is a co-borrower?
This type of loan has collateral attached to it.
What is secured?
How often should a consumer review their credit report via all three credit bureaus?
What is annually?
This term is used to define more than 3 active tradelines with more than 2 years history reported to credit bureau.
What is established credit?
Term used for secondary applicant when applying for a loan to offset minimum credit score required to approve, typically due to limited credit or no credit. Not using joint income.
What is a co-signer?
This type of loan is backed solely by the borrower's credit worthiness with no collateral needed.
What is unsecured?
What is zero or free?
Term used for someone who is granted permission to use a credit card. They are not an owner of the credit card or responsible to repay the debit.
What is an authorized user?