Credit Basics
This is the amount of money you borrow when using a credit card.
What is the principal (or credit balance)?
This is the range of FICO credit scores, from lowest to highest.
What is 300 to 850?
This federal agency is responsible for collecting taxes in the United States.
What is the IRS (Internal Revenue Service)?
This reduces your taxable income
What is a tax deduction?
This IRS form is used by individuals to file their annual income tax returns.
What is Form 1040?
This is the yearly cost of borrowing money, expressed as a percentage.
What is APR (Annual Percentage Rate)?
This factor, making up 35% of your credit score, tracks whether you pay bills on time.
What is payment history?
This following tax is applied to wages, salaries, dividends, etc
What is income tax?
This reduces your actual tax bill dollar for dollar.
What is tax Credit?
This is used to confirm your eligibility to work in the country
What is an I-9 FORM?
This is where banks get the money to lend out money
What is consumer savings account?
What is five parts of credit score?
This form is sent by employers showing how much you earned and how much tax was withheld.
What is a W-2?
This credit helps working families with children by reducing their tax bill.
What is the Child Tax Credit (or Earned Income Tax Credit)
When you only pay the minimum payment, interest is charged on this portion of your balance.
What is the remaining balance?
This percentage of your credit score is determined by how much credit you're using compared to your limit.
What is 30% (credit utilization)?
This tax system means people with higher incomes pay a higher percentage in taxes.
What is a progressive tax system?
Jess is 21 in college and has a job that provides 65% of her support. When filing taxes her status would be
What is single? (non dependent)
This is the lowest amount you must pay on your credit card each month.
What is the minimum payment?
Opening many credit accounts in a short period can lower your score by reducing this factor.
What is average age of accounts (or length of credit history)?
This is the term for income taxes automatically taken out of your paycheck.
What is withholding (payroll tax)?
These types of contributions to retirement accounts like 401(k)s can reduce your taxable income.
What are pre-tax (or tax-deductible) contributions?