Credit Terms
A person is borrowing money to pay for something.
What is Line of Credit?
The credit score range.
What is 300-850?
Accounts for 35% of your Credit Score.
What is Payment History?
What is a Credit Card?
Typical amount of days in a billing cycle
What is 30 days?
Shows your history of borrowing money.
What is a Credit Report?
Another name for Credit Score.
What is FICO score? (Fair Isaac Corporation)
Accounts for 30% of your credit score.
What is Amounts Owed?
Rate that changes over time.
The time between the end of your billing cycle and the due date of the bill.
What is grace period?
Shows how reliable you are to pay back money you borrowed.
What is your Credit Score?
The ideal balance amount for your credit limit (percentage).
What is 30% of your credit limit?
Accounts for 15% of your credit score.
What is Length of Credit History?
Rate that stays the same.
What is Fixed Interest Rate?
The biggest mistake people make with credit cards.
What is only paying the Minimum balance each month?
Yearly interest rate on a loan, credit card, or any other debt, plus fees.
Three main Credit Bureaus that keep track of your credit history.
What is TransUnion, Experian, and Equifax?
Accounts for 10% of your credit score.
What is New Credit?
Maximum amount of credit your lender is going to allow you to use.
What is credit limit and approval?
Debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made
What is secured debt?
How often should you check your credit report...
What is once a year?
Accounts for 10% of your Credit Score *(hint: types of credit in use).
What is Credit Mix?
Allows you to borrow more as you make payments on your debt (up to your credit limit).
What is Revolving Line of Credit?
The real reward of a credit card.