Credit
Parts of credit report ?
payment history, amounts owed, length of credit history, and new credit
1 method of managing debt?
Pay the minimum payment as fast as you can (snowball)
Credit vs. debit
Credit involves making purchases while barrowing money and you repay it off later with interest, while debit you have a balance and it comes from your account
What is a schumer box?
Basic information on rates and fees
What is an unauthorized user?
A person with permission to carry another persons credit card but is not legally responsible for the bill
strategies to improve credit score?
Dont miss payments, catch up, and dont have multiple accounts open
Another method of managing debt?
Pay highest interest rate (avalanche)
Benifets of credit
You can make bigger purchases
What is an annual fee?
A yearly fee charged for having a specific credit card
What is a balance transfer?
Transferring debt from one credit card account to another usually for a fee
Purpose for building credit when young
Lower interest rate when barrowing money, more credit cards, approval for loans, and credit limit extended
Money legally witheld from paycheck and sent to another party
Benifets of credit
APR
The cost paid each year to barrow money
What does the term cash back mean?
It is a credit card benefit that pays the cardholder a % of their net expenditures often as cash, reward points, miles, gift cards etc.
Co-signer purpose
Low interest, lower monthly payment, and help qualify for loans
What is debt?
The amount owed by the borrower to the lender.
The number of days you have to pay the bill between statement to bill
Charge card
A special type of credit card with no interest because the full balance must be paid at the end of each month
What is a credit card agreement?
A legal doc that outlines the terms and conditons for the usage of your credit card
Role of credit reporting agencies?
Maintain credit info, and collect info on individuals to generate the credit report
What are some examples of debt?
Student loans, mortgages and credit card purchases
Amount owed on any debt that changes interest ex: credit card loans
Credit limit
The abosulte maximum amount you may barrow on a credit card
What is interest?
The amount owed as the cost of barrowing money from your credit card