Credit 101
This type of loan has fixed payments and a set payoff schedule, like a car loan.
Installment Loan
In lending, the abbreviation DTI refers to the ratio comparing your monthly debt payments to your income. What does DTI stand for?
Debt-to-income
This three-digit number represents your creditworthiness.
Credit Score
This type of credit lets you borrow, repay, and borrow again up to a set limit.
Revolving Loan
This organization collects payments on debts that have gone unpaid.
Collections Agency
The smallest payment you must make on a credit card bill.
Minimum Payment
This report shows your credit history and accounts.
Credit Report
This is the extra money charged for borrowing money.
Interest
When a lender checks your credit for a loan application, it is called this.
Hard Inquiry
True or False: Closing old credit accounts can sometimes hurt your credit score.
True
On credit cards and loans, the abbreviation APR tells you the yearly cost of borrowing money, including interest. What does APR stand for?
Annual Percentage Rate
This is something valuable you promise to a lender that can be taken if you fail to repay a loan.
Collateral