Building Credit
The age requirement needed enter a legally binding contract such as a loan with the bank.
What is 18 years old?
Someone who is granted permission to use a credit card but is not the owner or responsible to repay the debt.
What is an authorized user?
How many credit bureaus are there?
3 Equifax, Experian, and TransUnion
Lending product used to purchase a home which includes VA, FHA, USDA, and Conventional.
What is a mortgage?
This number is based on the information provided in your credit report, using factors such as credit card utilization and on time payment history.
What is a credit score?
What is the preferred credit card utilization percentage that makes a positive impact to your credit score?
30% or less
The amount of time given to make your payment, after the due date, that allows payment to not be considered late or incur a late fee.
What is grace period?
Minimum employment history required by a lender when applying for a mortgage loan.
What is 2 years?
To NOT be considered "limited credit history" you need to have ___active tradelines, reporting at least ___ years history.
3 active, 2 years
This type of credit card is used to build credit. It requires cash a collateral.
What is a secured credit card?
Non-refundable fee charged when applying for a loan to cover processing the application.
What is application fee?
True or False: When applying for a mortgage loan all 3 credit bureaus are pulled, and the middle score is used for each borrower.
True
Name the numerical range given from lowest to highest by the credit bureaus?
What is 300-850?
Fees charged monthly at a particular rate for maintaining a balance on your credit card against the principal portion used.
What is interest?
Fee charged to a loan for failure of making payment by the due date or within the grace period.
What is a late fee?
True or False: When financing greater than 80% LTV (loan to value) and escrow account is required.
True
The ability to borrow money when applying for a loan with a passing score and on time payment history.
What is good credit?
True or False: A credit card is safer to use than your debit card for online purchasing.
True
Term used for a secondary applicant when applying for a loan. Using both applicants' household income to support the loan and using the higher of the 2 credit scores. Example: Husband and Wife
What is co-borrower?
These 2 items are paid from your escrow, one annually and one bi-annually.
What is HOI (homeowner's insurance) and property taxes?