Credit Basics
This is borrowed money you must repay.
What is credit?
This is the cost of borrowing money, usually expressed as a percentage.
What is interest?
The most important factor in your credit score.
What is payment history?
This is a common mistake where you spend more than you can repay.
What is overspending?
This tool helps track your credit score.
What is a credit report?
This number represents your creditworthiness.
What is a credit score?
Paying only this increases long-term debt cost.
What is the minimum payment?
This is the recommended credit utilization percentage.
What is below 30%?
Closing old accounts can hurt this factor.
What is credit history length?
This tool helps prevent you from missing payments.
What is autopay?
This type of credit has a limit you can borrow up to repeatedly.
What is revolving credit?
Higher interest rates mean this for your debt.
What is more expensive / longer payoff?
This is generally considered a "good" credit score range.
What is 670-739 (or higher)?
There are nine common credit card fees. Name any three.
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 you plan spending and saving.
What is a budget?
This agency compiles your credit history into reports.
What is a credit bureau?
This type of interest grows on interest.
What is compound interest?
This measures how much credit you're using.
What is credit utilization?
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)?
This is the recommended amount for an emergency fund for a typical college student.
What is $500?
Many credit cards have these, but they can sometimes encourage overspending.
What are rewards/cashback?
Ignoring debt can lead to this legal action.
What is collections / lawsuits?
This type of credit check often lowers your score slightly.
What is a hard inquiry?
Co-signing means you are this.
What is responsible for the debt?
This type of card helps people with no or bad credit build credit.
What is a secured credit card?