Vocabulary
what is a Credit Limit
The Maximum amount you can barrow
What is a minimum Payment
the lowest amount your allowed to pay
Where do you get a loan?
From a bank
Where can you check your credit score
Online: or credit Karma app
What is a late payment fee
a fee you are charged when you are late paying your bill
What does APR stand for
Annual Percentage Rate
What types of Loans are there
Personal
Business
Auto
Mortgage
education/student
What happens when you dont pay on time?
it goes to collections and your credit score goes down
What is a due date
The date a bill is due to be paid
What is an interest rate?
its a fee placed on the loan.
what is the difference between a Bank and a credit Union?
Credit unions usually have better rates.
I mentioned before that Credit Scores are like your grade so who or what is Collections?
a collection agency is like the principal at school
What is an Annual Fee
a yearly fee you must pay for having a credit card
what is a missed payment?
forgetting to pay the bill on time
Whats the difference between Savings and checking account?
a checking account is connected to a debit card where you can make daily transactions. a Savings account is meant to save up for things
Credit Scores rang from 300-900 what is a good score?
the higher the score the better
What is a credit score?
hint: homework
credit score is directly related to payments made either late or on time
What is Debt
Debt is something you owe
What is a Budget
A budget is a way to manage your money to ensure you have enough to cover all expenses
What four things effect your score?
personal info
loans
how long you've had credit
payment history