Building Credit
A number that potential lenders will use to determine whether they should lend you money, how much, and at what interest rate
What is a credit score?
Replaces an old loan with a new one with terms that are better for your situation
What is refinancing?
What is the 50/30/20 Rule?
50% to needs, 30% wants, and 20% to long-term savings
What is the recommended percentage of your income to save each month?
What is 20%?
What is the term for the interest rate that credit card companies charge you if you carry a balance from month to month?
What is the annual percentage rate or APR?
What is the range for a credit score
What is 300 to 850?
You focus on paying off your smallest debt first, then roll the amount that you were paying into the next smallest, and so on until you’ve paid everything off.
What is debt snowball?
What finances are and how to spend, save, and manage money effectively.
What is financial literacy?
What is the difference between a savings account and a checking account?
What is a savings account is designed for long-term savings and generally pays a higher interest rate, while a checking account is designed for everyday transactions and usually does not pay interest?
What is the difference between a credit limit and a cash advance limit on a credit card?
What is a credit limit is the maximum amount of credit you can use for purchases, while a cash advance limit is the maximum amount of cash you can withdraw from an ATM or bank using your credit card?
Building your credit score requires balancing multiple credit types where you consistently make your payments without overwhelming yourself or opening too many accounts all at once
What is diversify?
You pay off the debt with the highest interest percentage rate first, and then work your way down, saving you more in interest rates.
What is debt avalanche?
What is the rule of 72?
What is the formula used to estimate how long it will take to double your money based on an assumed interest rate?
What is the purpose of an emergency fund?
What is to provide a financial cushion in case of unexpected expenses or job loss?
What is the recommended percentage of your credit limit that you should use to maintain a good credit score?
What is 30% or less?
The first step for using a credit card is
What is choosing the right one?
Provide an example of "good debt"
What is the first step in making a budget?
What is tracking your income and expenses?
What is the term for a financial goal you set for yourself that you want to achieve in the short-term, such as saving for a vacation or a new gadget?
What is a savings goal?
What is the benefit of using a credit card with rewards points or cash back?
What is you can earn rewards or cash back on your purchases, which can be redeemed for travel, merchandise, or statement credits?
What are two types of credit cards?
What is a charge, traditional, secured, or co-sponsored cards?
All of your current assets (cash, real estate, etc.) minus your liabilities (debt, mortgages, expenses, etc.)
What is net worth?
When creating a budget, what is the importance of setting goals?
What is setting goals helps you prioritize your spending and stay motivated to stick to your budget?
What is compound interest?
What is interest that is earned not only on the initial deposit or investment, but also on any interest earned thereafter?
What is the importance of paying your credit card bill on time and in full each month?
What is paying your bill on time and in full can help you avoid interest charges and late fees, as well as maintain a good credit score?