Loan Basics
This type of rate will stay the same over the course of the loan.
What is a Fixed Rate?
This makes up the largest portion of a credit score. Being late on this can do significant damage.
What is Payment History?
This is the approximate amount of time it takes to have a credit report after establishing credit.
What is 3-6 Months?
This card includes overdraft fees, is protected by federal law, can be used at ATMS, and only accesses the money you have in your account.
Loan Term
This type of loan may start with a lower interest rate, but it can change at any time.
What is a Variable Rate?
This is the second most important factor in a credit score. To understand this factor, you need to understand credit utilization.
What is Amounts Owed?
This is the maximum possible score I can earn on the FICO scale.
What is 850?
This type of card helps build your credit score. You get to use someone else's money, but have to pay it back, potentially with interest.
What is a Credit Card?
One of the three parts of any loan. This is how much the lender charges you for borrowing money.
What is interest rate?
This type of debit is tied to a specific asset, which can be repossessed if the borrower fails to make payments.
What is Secured debt?
Having different types of accounts is important. That is why this factor is a part of your credit score.
What is Credit Mix?
This is the lowest possible credit score I can have on the FICO scale.
What is 300?
This types of cards are available to anyone. They are usually saddled with many fees and are limited to the amount of money put on them.
What is a Prepaid Card?
Having this may give you a lower interest rate, but lenders may take this back if you fail to pay the loan.
What is collateral?
This type of loan are used to finance a specific purchase for a specific amount of time. Regular payments are made to pay the interest and the principal.
This area of the credit report is difficult to manipulate. It is one of the reasons its important to start building credit early.
What is Length of Credit History?
These are typically inquiries by lenders after you apply for credit. These inquiries will impact your credit score because most credit scoring models look at how recently and how frequently you apply for credit.
What are Hard Inquires?
This acronym refers to the interest rate placed on a credit card.
What is APR?
Having a good credit score, making a larger down payment, and finding a cosigner with good credit are all ways to do this.
Lower your interest rate.
This type of credit can be used for anything you want, as long as you stay below the credit limit.
What is Revolving Credit?
This makes up a small portion of your credit score. This element may also involve rate shopping.
These are reviews of your credit file, including reviews of existing accounts by lenders, prescreening inquiries by prospective lenders, and your requests for your annual credit report. These will not change your credit score.
What are Soft Inquires?
This type of card usually requires an upfront payment to be made. You will get to use someone else's money, but you probably have no history and they want a guarantee.
What is a Secured Credit Card?