Building Credit
A good/high credit score
This allows you to legally remove liability for some or all your debts
Bankruptcy
This is the highest a credit score can be, but at this point its just bragging
850
According to this strategy, you should pay off your debt by interest, highest being first
High Rate Method
This compilation of your information is used to determine your credit score
Credit Report
This is someone who's been added to a credit card by the card's owner and can make purchases with it
Authorized User
This occurs when you default on your auto loan
Repossession
This is the lowest a credit score can be
300
According to this strategy, you should pay off your debt by balance, lowest being first
Snowball Method
Doing this is the #1 best way to improve your credit score
This website is where you can check important credit info for free once a year
This is when you default on your mortgage and lenders repossess your home
Foreclosure
This is the most commonly used credit scoring model that is represented by an acronym
FICO
Some mortgages or loans have these if you pay MORE than the minimum
prepayment penalties
This is the result of having little to no information to receive a credit score
Thin Credit File
This is when a lender checks your credit as part of a loan or credit card application
Hard inquiry
This is when credit card issuers write off your debt as uncollectible
Charge-offs
This makes up 35% of your credit score
Payment History
Looking for this offer on a new credit card means no interest during the introductory period
0% Balance Transfer
Backed by a security deposit, this line of credit is designed for people who want to rebuild credit or have a lack thereof credit history
Secured Credit Card
These are the 3 credit bureaus
Equifax, Experian, Transunion
This is a last resort for those who face overwhelming debt but cannot or do not want to qualify for bankruptcy
Debt settlement
This prevents organizations who extend credit from denying you based on race, ethnicity, or other categories unrelated to your credit history
Equal Credit Opportunity Act
This is when you combine all loans into one singular loan
Consolidation loan
Given you have no credit history, your credit score will be this amount
A-HA! You don't have one