Credit Basics
Length of Time you have to pay back
What is a Credit Term?
A card that decreases your checking account vs a card that you have to pay back each month
What is the Difference between Debit card and Credit cards?
What is Annually?
Credit score ranges:
720+
660-720
669-
What is:
Prime Credit
Near Prime
Sub Credit?
Borrowing money to eventually buy vs. renting for a period of time
What is a loan vs. a lease?
Someone who will sign the loan documents and agree to pay if you can't
What is a co-signer?
Name one of the 5 things to consider when selecting a credit card
What is Does the card have a annual fee
What is the APR/Interest rate
What is Penalty fee's and rates
What is how long the grace period is
What is the type of billing cycle used
Experian,Equifax,TransUnion
What is 3 main credit reporting bureaus?
Julia has a credit score of 690, how does this impact her ability to take loans?
She is average and can still take loans but at larger interest rates
When to take out a loan
For big purchases like houses, cars, or college
Auto loans, Credit cards, Student Loans, Payday Loans, Personal loans, Mortgages
What is 6 types of Credit?
Get a Co-signer, Chip away at Student loans, Get a secured credit card, Tag onto another credit card.
What is 4 ways young people can build credit?
The amount you use of your available credit
What is Credit Utilization Rate?
Difference between fixed and adjustable rates
rates stay the same for life | can change over years (low interest)
Convenience, Future Planning, Benefits, Emergency
What is Why is credit useful?
What is Outstanding Balance?
Collections; Unpaid Child Support; Unpaid Bills; Bankruptcy
What are the things that show up on your credit report?
Thin file and consequences
Not enough information to establish credit score
Bank believes you don't exist or can't trust your credit repayment
Methods of debt repayment
What is High Debt: paying largest first
What is Snowball: paying smallest first
Jimmy applies for a bank loan and agrees to, but takes his car as collateral
What is Secured loan?
How to build Credit?
What is Loans, Paying bills on time, Having a credit card.
What is 7-10 years?
The five components of a credit score
10% credit mix
10% new accounts
15% length of credit history
30% amount owed
35% payment history
Gives small loan money, requiring complete repayment at once while charging a fee
What is a Payday loan?