Money 101
What is income?
Money that has to be paid back
What is a loan?
A record of how a consumer has repaid credit obligations in the past. It shows payment history, late and on-time payments, bankruptcy filings, and more.
What is credit history? or What is a credit report?
Things that are nice to have, or satisfy some desire
What are wants?
A financial institution that is owned by stockholders (it is a for-profit company)
What is a bank?
Things that are purchased can also be called this
What are expenses?
The type of interest rate that will change when the index changes
What is a variable interest rate?
Equifax, TransUnion, and Experian
Who are the three major credit reporting agencies?
Name of a fund that you should have available to cover unexpected expenses
What is an emergency fund? or What is a rainy day fund?
Not-for-profit organization that is owned by members
What is a credit union?
APR
What is Annual Percentage Rate?
The type of interest rate that remains the same throughout the term of the loan
What is a fixed interest rate?
FICO credit score
What lenders use to assess an individual's credit risk?
Allows you to tracking money being earned and how it is being spent
What is a budget?
Type of bank account that gives you easy access to funds through regular deposit and withdrawal transactions
What is a checking account?
The place to confirm all reported credit is really yours (and not someone opening credit in your name fraudulently)
What is your credit report? or What is annualcreditreport.com
The cost of borrowing money
What is interest?
Maintain a history of a person's credit, such as payment history, the type of credit borrowed. They also provide lenders with credit scores.
What do credit reporting agencies do?
What is a debit card?
Type of account that allows you to store money while earning interest. Ideal for money that you are saving. Note: they are federally insured up to $250,000
What is a savings account?
A three-digit number used to assess your credit risk
What is FICO® Score?
The addition of unpaid interest to the principal balance of a loan
What is interest capitalization?
The website that provides free access to your credit report, from each of the three credit bureaus
What is www.annualcreditreport.com?
In regard to spending, these are things that are a necessity
What are needs?
The fee that is charged for a returned check or electronic payment when you do not have enough money in your account to cover the transaction. The average is $35 per transaction.
What is an overdraft fee?