A
What is the highest possible credit score?
850
What is the lowest possible credit score
300
What is a loan?
An amount of money given to someone that you have to pay back over time with interest.
What is a credit report?
A record of an individual's past borrowing and repaying history.
What is a Schumer box?
Contains information about card payment, credit card companies are required to provide this information.
What does APR stand for?
Annual percentage rate
What is collateral?
Something pledged as security for repayment of a loan.
Why should you comparison shop for different credit cards?
Cards have different benefits and interest rates.
Is it better to have a high or low credit score?
high
What are annual fees?
The yearly charge for credit card ownership.
What is the biggest brand of credit cards
Visa
What is character in terms of credit?
A person's honesty and reliability
What is a due date?
The day by which the company requires a payment to be made.
Describe a debit card
No interest, linked directly to a bank account.
What is the Fair Isaac Company? (FICO)
The most common credit scoring system.
What is the average American credit score?
711
What are conditions in credit?
The general state of the economy.
What is the snowball method?
Repaying debts from the smallest to the highest amount.
Describe interest
The price of borrowing money, you have to pay back the money at a higher rate.
What is the name of the amount that must be paid each month to avoid penalty fees?
minimum payment
What does CRA stand for?
Credit Reporting Agency
What is a credit application?
A form requesting information about a person's ability to repay a debt.
What is a credit line?
The maximum amount of charges allowed on an account.
What category has the greatest weight on your credit score?
Payment history (35%)
Name one website you can get your credit information.
Equifax, TransUnion, and Experian