Credit Basics
This is borrowed money you must repay
What is credit?
This is the cost of borrowing money
What is interest?
The highest possible credit score range
What is 850
Missing this hurts your credit score the most
Paying bills on time helps build this
What is good credit?
This number represents your creditworthiness
What is a credit score?
This type of interest grows on interest
What is compound interest?
The most important factor in your credit score
What is payment history?
Closing old accounts can hurt this factor
What is credit history length?
This habit prevents missed payments
What is autopay?
This type of card allows you to borrow money
What is a credit card?
Paying only this increases long-term debt cost
What is the minimum payment?
This measures how much credit you're using
What is credit utilization?
There are nine common credit card fees. Name any two.
What are annual fees, processing fees, interest charges, late payment fee, foreign transaction fee, balance transfer fee, cash advance fee, over the limit fee, or returned payment fee?
This tool helps track your credit score
What is a credit report?
This agency tracks your credit history
What is a credit bureau?
Higher interest rates mean this for your debt
What is more expensive / longer payoff?
Recommended utilization percentage
What is below 30%?
Co-signing means you are this
What is responsible for the debt?
This is the recommended amount for an emergency fund for a typical college student
What is $500
Name one of the three major credit bureaus
What is Experian, Equifax, or TransUnion?
Name three of the five things that affect your credit score
What are payment history, amount owed (credit utilization), length of credit, types of credit, and new credit (hard inquiries)
Opening too many accounts quickly causes this
What are hard inquiries / score drop?
Ignoring debt can lead to this legal action
What is collections / lawsuits?
This type of card helps people with no or bad credit build credit
What is a secured credit card?