Building Credit
A good/high credit score
This allows you to legally remove liability for some or all your debts
Bankruptcy
This is the highest a credit score can be, but at this point its just bragging
850
Doing this is the #1 best way to improve your credit score
This compilation of your information is used to determine your credit score
Credit Report
This is someone who's been added to a credit card by the card's owner and can make purchases with it
Authorized User
This occurs when you default on your auto loan
Repossession
This organization monitors the three credit bureaus since they handle sensitive information.
Federal Trade Commission (FTC)
Using a credit card to obtain cash from an ATM is called a
This is the lowest a credit score can be
300
This website is where you can check important credit info for free once a year
This is when you default on your mortgage and lenders repossess your home
Foreclosure
-DAILY DOUBLE-
This is the result of having little to no information to receive a credit score
Thin Credit File
Some mortgages or loans have these if you pay MORE than the minimum on your loan.
prepayment penalties
How long does information stay on your credit report?
7-10 years
This is when a lender checks your credit as part of a loan or credit card application
Hard inquiry
Backed by a security deposit, this line of credit is designed for people who want to rebuild credit or have a lack thereof credit history
Secured Credit Card
This makes up 35% of your credit score
Payment History
Looking for this offer on a new credit card means no interest during the introductory period
0% Balance Transfer
The percentage indicating how much of your credit limit you are using is called:
Card Utilization
These are the 3 credit bureaus
Equifax, Experian, Transunion
A federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files
Fair Credit Reporting Act
This prevents organizations who extend credit from denying you based on race, ethnicity, or other categories unrelated to your credit history
Equal Credit Opportunity Act
Filing for chapter 7 “straight” or “liquidation” bankruptcy means that this person has
Insufficient income to pay their debts
Why do people use payday loans even though they know they have higher interest rates?
-
-Your credit score is lowered
- Interest is charged on the amount owed
- Company may charge a fee on top of money/interest owed
- Interest rate may go up as a result of missing a payment