Responsible Repayment
Paying your bills on time consistently demonstrates this important aspect of creditworthiness.
What is a history of repaying loans and credit responsibly?
This is the annual percentage rate charged on your outstanding credit card balance.
What is APR?
This is the term for someone who agrees to be responsible for a loan if the primary borrower defaults.
What is a cosigner?
An unauthorized charge on your credit card statement could be a sign of this.
What is potential identity fraud?
Name one of the three major credit reporting agencies in the United States.
What is Equifax, Experian, or TransUnion?
Failing to make payments on your loans or credit cards can negatively impact this three-digit number.
What is a credit score?
A credit card that requires a security deposit as collateral is known as this type of card.
What is a secured credit card?
Individuals with limited or no credit history might need one of these to help them secure a loan.
What is a cosigner?
You should contact this federal agency to report incidents of identity theft.
What is the Federal Trade Commission (FTC)?
You have the right to access a free copy of this from each of the major credit bureaus on an annual basis.
What is a credit report?
This type of payment, even for small amounts, can help you build a positive credit history over time.
What are regular and timely payments?
This is the period of time after your billing cycle ends when you can pay your balance in full and avoid paying interest.
What is a grace period?
By cosigning a loan and the primary borrower makes timely payments, this happens to the cosigner's credit history as well.
What is building a positive credit history?
If you notice suspicious activity on your credit report, you should immediately contact this type of institution where the fraudulent activity occurred
What is the appropriate lending institution or creditor?
This numerical representation of your creditworthiness is calculated based on information in your credit report.
What is a credit score?
Lenders use your repayment history to assess this, which determines if they will approve you for future credit.
What is credit risk?
Besides APR, these charges, such as annual fees or late payment fees, can significantly impact the overall cost of using a credit card.
What are fees?
If the primary borrower fails to repay the loan, this is the financial risk that the cosigner takes on.
What is being responsible for the entire debt?
Besides the FTC and lenders, you may also need to file a report with this local authority if you believe you are a victim of identity theft.
What is law enforcement or the police?
Making late payments, having high credit utilization, and defaulting on loans are examples of these that can lower your credit score.
What are negative actions or factors?
Consistently missing payments can lead to these negative marks on your credit report, making it harder to borrow in the future.
What are negative credit history or derogatory marks?
Rewards credit cards often offer these incentives, such as cashback or travel points, to cardholders.
What are rewards or benefits?
Even with a cosigner, it is still crucial for the primary borrower to do this to establish their own independent creditworthiness.
What is making timely payments?
Incorrect personal information, accounts you don't recognize, or inquiries you didn't authorize are examples of these you might find on your credit report that could indicate fraud.
What are discrepancies on credit reports?
Keeping credit card balances low, paying bills on time, and having a mix of credit accounts are examples of these that can improve your credit score.
What are positive actions or factors?