Credit Basics
This is borrowing money with the promise to repay it later.
Credit
This is the interest rate charged on a credit card balance.
APR
Credit scores usually range from this number to this number.
300-850
This type of loan is used to buy a car.
Auto Loan
You should try to keep your credit utilization below this percentage.
30%
This person or company lends you money.
Creditor/or Lender
This is the smallest payment you must make each month to keep the account in good standing.
Minimum Payment
This is the most important factor affecting your credit score.
Payment History
This is money charged by the lender for borrowing.
Interest
This is the best way to avoid paying interest on a credit card.
Pay the full balance every month
This is the maximum amount of money you are allowed to borrow on a credit card.
Credit Limit
This is what you can do each month to avoid interest.
Pay in full
Using too much of your available credit hurts your score. This is called this.
Credit Utilization
This loan is used to purchase a home.
Mortgage
Opening many new credit cards at once can do this to your credit score.
Lower it
This is the record of your borrowing and repayment behavior.
Credit History
This fee is charged when you pay your credit card late.
Late Fee
Checking your own credit score will affect your score in this way.
It does not hurt your score (soft inquiry)
This type of interest is calculated on both the principal and previously earned interest.
Compound Interest
This habit helps build strong credit over time.
Making on-time payments
This report shows detailed information about your credit accounts and payment history.
Credit Report
The name of the chart that shows you your payments and how much goes to the principal and interest during each payment over the lifespan of the loan.
Amortization Schedule
Missing payments for 30+ days can do this to your credit score.
Lower it significantly
This happens when you fail to repay a loan according to the agreement.
Default
This strategy involves using credit responsibly while keeping balances low and paying on time.
Building credit