Managing Debt
The method of paying down debt by paying the lowest balance debt with the largest payment
Snowball Method
The number one factor of your credit score is...
Payment history
How long does it take to establish your first credit score?
6 months
neglecting to pay student loans or other debts could result in...
wage garnishments
The type of loan/debt that could result in the seizure of your property if you miss/stop making payments
Secured
How often should you check your credit report?
at least once a year
The highest your credit score could be
850
Having a high credit score will help you secure loans with _________ APR
Lower
If you do not make your payments, your debtor may sell your account to...
a collection agency or debt collector
Paying the debt with the highest interest with the largest payment
Avalanche method
What should you do if you find an error on your credit report?
Report it
The second most important factor in determining your credit score
Credit Utilization
A ____________ is a credit card you deposit money into to help establish credit
Secured Credit Card
What is the difference between a credit report and a credit score?
Report contains all history involving credit, report is a current score to gauge your reliability
What should you seek to do for credit cards each month in order to avoid interest charges?
Pay them off in full
All of the following would show up on a credit report EXCEPT...
1. Salary of your current job
A person that guarantees a loan for you and accepts responsibility if you default on the payments
cosigner
A word used for waiting until the last minute or waiting too long
procrastination
The credit yeti lives in the....
Mountain of Debt
What 3 agencies report on your credit?
Experian, Trans-Union, Equifax
What percentage should you keep your credit utilization at or below?
30%
you need to establish a credit score in order to purchase/lease an apartment, a home, a ______ or make other large purchases on your own
Car
There is a third method for paying down debt besides Snowball and Avalanche...
Debt consolidation