Credit Card Basics
This card lets you borrow money from a bank up to a certain limit and pay it back over time
What is a Credit Card
The most important factor that builds a credit score, accounting for about 35% of the total distribution for it
What is Payment History?
The names of the three companies that provide credit reports
What are Equifax, Experian, or TransUnion?
The maximum amount of money you can charge on to your credit card
What is a credit limit?
The second most important factor within a credit score, shows good debt management with credit cards
What is Credit Utilization?
An action that will not hurt/affect your credit score
What is Checking a Credit Report?
A program that is part of some credit cards that provides benefits such as travel points and cash back
What is a rewards program?
This aspect of a credit score demonstrates a longer track record with credit
What is Length of Credit History?
The amount of time guaranteed for a credit report for free
What is One Year?
This happens when you make a transaction on your credit card that would put you over your credit limit
What is being declined/denied?
A small factor within a credit score, when a person owns many types of credit
What is Credit Mix?
The parts of a credit report
What is debt/loans/balances
The document that you receive at the end of the month that lists all of the transactions on your credit card, minimum payments and due dates.
What is a credit card statement?
Too many applications of credit decrease this part of the credit score
What is New Credit?
The sources that credit agencies get their information from
What are creditors/public records/collection agencies