Credit Basics
This three-digit number determines your creditworthiness
What is a Credit Score?
A mortgage is this type of credit, used to buy one of these.
What is a home (or house)?
This is the highest possible FICO credit score
What is 850?
If you pay only this on your credit card, you'll be in debt longer and pay more interest
What is the minimum payment?
What is paying on time?
This type of credit card fee is charge yearly just for having the card
What is an Annual Fee?
This type of loan is usually used to pay for college tuition
What is a student loan?
Making credit card payments on time affects this part of your credit score the most
What is payment history?
This percentage is charge when you carry a balance month to month
What is the APR (Annual Percentage Rate)?
This is a bad idea: maxing out your cards and only making these small payments
What are minimum payments?
This report lists your credit history, loans, and payment behavior
What is a Credit Report
What is a secured credit card?
Having this high compared to your credit limit can hurt your score
What is a high credit utilization ratio
This kind of card gives you points, miles, or cashback on your purchases
What is a rewards credit card?
Do this before applying for a mortgage to avoid surprises on your credit report
What is checking your credit report?
This type of interest rate can change over time
What is a Variable Interest Rate?
This type of credit involves borrowing money against the value of your home
What is home equity line of credit?
This FICO credit score range is considered "good"
What is 670 to 739?
What is an over-the-limit fee or (declined transaction)?
Closing this type of credit account can sometimes hurt your score by lowering your credit history length
What is your oldest credit card?
This law gives consumers the right to a free credit report once a year from each of the three credit bureaus
What is the Fair Credit Reporting Act?
A car lease is a type of credit known as this, where you don't own the asset
What is installment leasing (or simply leasing)?
Opening many new credit accounts in a short time can hurt your score due to this type of inquiry.
What is a hard inquiry?
This federal act limits your liability to $50 if your credit card is stolen
What is the Fair Credit Billing Act?
Avoid applying for too many cards in a short time because it gives this impression to lenders
What is that you're a high-risk borrower?