Credit Fundamentals 1
Refers to your current financial situation and whether you have the resources to pay back a new loan
Capacity
Someone like a parent, family member, or friend who promises to pay back a loan if you don’t
Co signer
A card that lets you make monthly payments to repay money that you spend
Credit Card
The "A" in SMART goals stands for______.
Achievable
The cost of classes at a college, university, trade school, or certification program is the ________.
Tuition
Property or financial resources that can be used as insurance in case the loan is not repaid
Collateral
A detailed history of how you have borrowed money in the past, including how you handled paying back loans and credit cards
Credit Report
A number that shows how much of your overall credit you’re using.
Hint: it is good if it is 30% or lower.
Credit Utilization / Credit Ratio
Monthly fee you pay for insurance ________.
Premium
Type of insurance that helps protect people from potentially very large medical expenses.
Health/Medical Insurance
Refers to how reliable you are in repaying debts
Character
Refers to how deserving you are of getting credit, according to companies that lend money
Creditworthy
A number determined by your credit history. It helps lenders determine how creditworthy you are
Credit Score
A payment or charge collected by the government to cover the costs of government services or activities.
Taxes
The "T" in SMART goals stands for______.
Time/Timebound
Credit checks by lenders and other financial institutions to provide preapproval for credit cards and loans. It does not impact your credit score.
Soft Inquiry
When a financial institution checks your credit to make a lending decision. It impacts your credit score.
Hard Inquiry
The interest rate you pay on balances you carry over from month to month on a credit card
APR (Annual Percentage Rate)
Health insurance, paid time off (PTO), retirement plans, and tuition reimbursement are all examples of _____.
Workplace Benefits
Money taken from an employee's gross pay to cover taxes, benefits, and other legal or voluntary obligations, resulting in net take-home pay.
Deductions
A notice placed on your credit report that alerts credit card companies that you may have been a victim of identity theft
Fraud Alert
Restricts access to your credit report
Credit Freeze
Late payments are removed from your credit report in how many years?
7 years
Budgeting method where you automate your fixed expenses and your savings. You then spend the remaining balance freely without tracking daily purchases.
NO Budget Method
A financial aid program that provides part-time jobs for students in college. It allows students to earn money to help pay for school expenses like tuition, housing, books, or living costs.
Work-Study Program