Budgeting
This is a spending plan based on your income and expenses.
What is a budget?
This is money that is set aside to pay for unexpected expenses.
What is an emergency savings/fund?
Experian, Equifax, and Transunion are the 3 major ________ _______ that collect and store information about your financial history to generate credit reports.
What are credit bureaus?
This is the important credit score factor and accounts for 35% of your score measuring how reliably you paid your debts in the past.
What is payment history?
You paid your monthly car payment of $350 on time every month since taking out the loan.
What is raise?
This is an expense that is predictable and consistent from month to month.
What is a fixed expense?
This is the first rule of saving money.
What is pay yourself first?
This is the score range of an individuals credit score.
What is 300-850?
The part of your credit score that measures how much debt and available credit you are using. It accounts for 30% of your score.
What is amounts owed?
You applied for a new credit card at Old Navy.
What is lower?
This is money you receive for work or through investments.
What is income?
The amount of money that should be kept in an emergency savings should cover this number of months expenses.
What is 3 months?
This is a type of loan that you make regularly scheduled payments on. Example would be a car loan.
What is an installment loan?
This is part of your credit score that measures how long you have had accounts open and been using credit. It accounts for 15% of your score.
What is length of credit history?
You're currently carrying an $800 balance on your credit card that has a $1,000 limit.
What is lower?
This is the money left over after your monthly expenses have been met.
What is discretionary income?
This is a document used to determine the cash flow of an individual or family.
What is a personal spending plan?
This type of credit account does not close once you repay what you have borrowed. An example would be a credit card.
What is revolving credit?
This is part of your credit score that measures how many hard inquiries and new credit you have opened recently. It accounts for 10% of your score.
What is new credit?
You received a tax refund for $1,500 and used the money to to pay down your credit card debt.
What is raise?
This is what you give up (or trade-off) when making a choice or purchase.
What is opportunity cost?
These are the two types of savings goals.
What are short-term goals and long-term goals?
This type of inquiry is when a lender or another organization looks at your credit history which can impact your credit score.
What is a hard inquiry?
This is part of your credit score that measures how many different types of credit you are using. It accounts for 10% of your score.
What is credit mix?
You haven't paid your cell phone bill in more than 6 months and it was sent to collections.
What is lower?