True & False
Proper use of a debit card can increase your credit score.
False. A credit card can, though.
This is the period between when you get your credit card bill and when you have to pay it.
What is grace period?
The debt reduction strategy that emphasizes focusing on paying down the smallest debt first.
What is the snowball method?
If you find an error on your credit report that focuses on your credit card, this is the resource you should contact first to fix the error.
Who is the credit card company?
The type of lender that offers instant approval and excessively high interest rates on loans
What are predatory lenders or payday loans?
Length of credit plays no role in the credit score.
False. It is a smaller factor, but it still plays a role.
False: Applying for multiple cards creates a hard inquiry which reduces your credit score.
The debt reduction strategy that emphasizes focusing on paying down the highest interest rate loan first.
What is the Avalanche Method?
This is the best way to increase your credit score.
What is paying your bills on time and in full?
This is what APR stands for.
What is annual percentage rate?
Decreasing the number of your existing credit cards is a good way to increase your credit score
False: Doing so would reduce your available credit.
This is what many parents do for their children under 18 so they can get a credit card and start building their credit.
What is cosign?
This is what it is called when you create a new large loan to pay off all of the loans you have.
What is consolidation?
True or False:
Your total net worth greatly affects your credit score.
FALSE- Credit scores only show how you have handled your payments and your debt.
True or False:
You can look at your credit report as many times as you want for free.
False: You are able to check your credit score, but you are limited to one credit score a year per reporting agency. You can pay for this service.
Fixed interest rates are typically a little higher than variable rates.
True. Typically variable rates start lower, but may increase due to market forces.
This is the name assigned to the area of the credit card contract that tells you the terms and conditions of the credit card.
What is the Schumer's Box?
This strategy reduces your debt the fastest.
What is the avalanche method?
Generally speaking it takes this amount of time to increase your credit scores once you establish your loan.
What is 6 months?
These are two people/businesses that would check your credit score.
Who is anyone giving you a loan or providing you a service?
Credit card companies
Landlords
Bank loan officers
Cell phone companies
Employers
Having lower credit utilization increases your credit scores.
True. Having having high credit utilization means you may be overspending. Having a large ability to borrow helps.
Al spends $850 on his credit card this month that has at $1700 line of credit. He would have this much available credit the following month to spend on that card.
What is $850
This is what you can do with your bank if your old 20 year fixed rate mortgage is significantly higher than the current interest rate for the same term.
What is refinance?
These two areas make up the most important parts of the credit report.
What are payment history & total debt (credit utilization)?
This is what it is called when a portion of your pay is withheld to pay your bills.
What is garnished?