Loans
Credit
Managing Debt
Misc.
Random Credit Facts
1
It is something pledged as security for repayment of a loan.
What is collateral/secured debt?
1
It allows you to purchase items with the promise of paying it back; unlike its counterpart that requires you to spend your own money out of your bank account.
What is a credit card?
1
A car loan is an example of taking on this type of debt.
What is bad debt?
1
Of 50, 30, and 20%, it is recommended that this much be set aside for needs within your budget.
What is 50%?
1
Credit Scores as we know them today were introduced in this year. The same year that Batman was introduced to the big screen and Back to the Future saw its return. (Margin of error: 3 years.)
What is 1989?
2
When applying for a loan, the lending institution will perform this type of credit check.
What is a hard credit check/inquiry?
2
Credit Cards are considered this type of credit. You can continue to use them so long as you make payments and don't reach your limit.
What is revolving credit?
2
Because they are "investments", student loans and mortgages are typically considered this.
What are good debts?
2
When saving money for your retirement, investing in these has the greatest chance of getting you to $1 million in a shorter period of time.
What are stocks?
2
As of 2023, this state held the record for the most credit card debt held per person with an average balance of $7,863. They might need to chill on their spending.
What is Alaska?
3
Of a checking account/good credit score/credit card/car title, this is required to obtain a payday loan.
What is a checking account?
3
When factoring a credit score, this plays the biggest role.
What is your payment history?
3
When paying off multiple debts, this method will save you money and usually time.
What is the high interest/avalanche method?
3
Having no responsibility for maintenance and cheap monthly insurance are reasons for this.
What is renting a home/renting rather than buying?
3
It was in this year in the 1900's that the first credit card was used. It was a cardboard "Diners Club Card". (Margin of Error: 10 years)
What is 1950?
4
Offering collateral when applying for a loan will most likely have this impact.
What is lower the interest rate/provide better terms?
4
In regards to credit utilization, it is advised that one should not exceed this percentage of their overall available credit.
What is 30%?
4
Moving debt from one credit card to another in order to save on interest.
What is a balance transfer?
4
Having more freedoms and a long-term investment are reasons to do this?
What is buy a home/buy rather than rent?
4
This is the world record for most credit cards approved and kept open. (Margin of Error: 100)
What is 1,638?
Manish Dhameja, 30 April 2021
5
This is the typical repayment period for federal student loans.
What is 10 years?
5
It requires a down payment equal to what you want as a limit. Great for establishing a credit history.
What is a secured credit card?
5
When using the snowball method/balance method, you have this advantage over the avalanche method.
What is fast visible results/morale boost?
5
Auto loans are generally considered bad because cars inherently do this.
What is depreciate/lose value?
5
As of 2017, there were enough credit cards in circulation (globally) to circle the earth this many times.
What is 3.5?