Investments
What is something you put money into expecting growth over time.
What is a Investment?
Paying bills on time help raise this score.
What is credit score?
Money you owe to a lender.
What is debt?
This is the most important factor in your credit score.
What is payment history?
Allows you to use money from the bank up to a limit to pay back later.
What is a credit card?
What type of investment represents ownership in a company.
What is stock?
Keeping your credit card balances low compared to your limit improves this factor.
What is credit use?
This type of debt has fixed payments over time like a car or house lone.
What is installment debt?
What do you use to spend money from the bank.
This percentage shows how much of your credit limit your using.
What is credit utilization rate?
This investment is essentially a loan you give to company or government.
what is a bond?
This type of payment history has the biggest negative factor on your score.
What is late missing/late payment?
This type of debt has high interest and comes from credit cards.
What is revolving debt?
How long you have had accounts open.
What is length of credit history?
Expert recommended keeping below 30% for good score.
what is smart credit use?
This investment spreads your money across many assets.
What is mutual fund?
Strategy involves keeping older accounts to open help your score.
What is maintaining credit history?
Strategy that focuses on paying off the smallest debts first.
What is snowball debt payment method?
What part of credit includes credit cards loans and mortgages.
What is credit mix?
Paying your debt on time each month helps you avoid this.
What is interest?
Term that describes the earning returns on all earnings.
What is compound interest?
This action can temporarily lower your score due to hard inquiry.
What is applying for new credit?
This ratio companies how much debt you have and income you earn.
What is debt to income ratio?
This component reflects how often you apply for new credit.
What is credit inquiries?
Practice involves using credit regularly but responsibly to build score.
What is responsible credit usage?