credit basics
A number that shows how trustworthy you are with money.
what is a credit utilization?
how much credit you use
what does a credit score affect when borrowing?
interest rate
what is one way to build credit.
pay bills on time
missing payments hurt or helps?
hurts
What is the credit score range?
300-850
what percent should you stay under
30
Higher Score= higher or lower interest ?
lower
why start building credit young?
helps future loans and opportunities
bad
Name one factor that affects your credit score.
Payment history/ credit usage/ length of history/ new credit/
Using most or all of your limit helps or hurts?
Hurts
what is interest?
extra money paid for borrowing
what type of card helps beginners?
secured credit card
applying for many cards at once does what?
lowers score
Which factor matters the most?
payment history
If you're limit is $1,000 how much should you use max?
around $300
who gets better loan deals?
people with higher credit scores.
should you pay bills on time or late
on time
closing an old account can do what?
lower your score
what is a credit report?
a record of your credit history.
Whats one way to lower utilization
pay down balances/ increase limit
what happens If you have a low score.
higher rates / harder to get approved
does having no credit history help or hurt?
hurt
Not checking your credit can lead to what?
errors being unnoticed.