So like, what do you know?
What is a credit score?
Represents how responsible you are with paying things on time.
What is the highest range credit score?
850
You have low credit, but you want to improve it. What are some ways you achieve that?
Parents may add a child who is under 21 as an authorized user to an existing credit card.
True
What is Annual Percentage Rate (APR)?
Yearly percentage rate of the finance charge
How does having good credit benefit you?
Allows you to have access to low interest rates, jobs, good insurance rates, or improve chances of buying or renting property.
What is the lowest range credit score?
300
Does your credit history affect your ability to rent an apartment?
Absolutely.
A person would most likely need to use a lender in order to...
Buy milk, apply for a credit card, or buy a house?
Buy a house.
What is finance charge?
The amount of interest charged to an account for the billing cycle.
How old must one be to obtain a credit card?
18 years old.
What is a minimum payment?
The least amount that must be paid on a credit card each month
To build a positive credit history, I should pay cash for all purchases. True or false?
The most common credit scoring system is called the?
FICO
A credit card requires you to?
Make a minimum payment based on the outstanding balance
How is one's credit score determined?
Payment history, amount owed, length of credit history, and new credit.
Why might lenders want to see your credit history?
To determine whether you're able to pay on time or not.
You have a credit score of 570. Is this high or poor?
Poor. Do better.
What is important when establishing good credit?
Making payments on time.
The interest rate that applies when a borrower makes late payments is called a?
What is a credit report?
Statement that shows one's credit activity.
What is an overdraft fee?
When your bank charges you anytime you withdraw more money than what you have available in your account.
You charge $500 on each of your two credit cards. One is American Express with an interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%. Assuming that you are only making the minimum payment of $25 to each of the credit card companies, which card will you pay off first?
American Express (has a lower interest rate)
What are some things included in a credit report?
Current & past addresses, account balance, bankruptcies
Average credit score in the U.S. in 2023?
702.