Credit Score
What is credit utilization rate?
the percentage of your total credit that you are currently using
This term refers to the interest rate offered to a borrower with a low credit score.
High interest rate?
This type of credit allows you to borrow up to a certain limit and pay back over time, with interest.
What is a credit card?
How often do you get a free check on your credit report?
once a year
This term refers to the percentage of available credit that a borrower is using.
What is credit utilization rate?
What is the number that credit score runs through
300-850
This type of financial product may be difficult to obtain with a poor credit score, often requiring a co-signer or higher down payment.
A loan or a mortgage.
This term refers to the total amount of money you can borrow on a credit card or line of credit.
What is a credit limit?
Keeping this percentage below 30% is recommended to maintain a healthy credit score.
What is credit utilization?
Does your income affect your credit score?
No
Having a bad credit score can prevent personal access to
Car Loans, Mortgage Loans, Renting Houses
This score, ranging from 300 to 850, helps lenders determine your creditworthiness.
What is a credit score?
How long is bankruptcy shown on your credit report?
7-10 years
This action, involving paying down balances or increasing credit limits, can help improve this key credit metric.
What is lowering your credit utilization rate?
What are the 5 components of your credit score
Payment history, Amount owed, Length of credit history, New credit, and Credit mix
If you have bad credit history, will you get approved for good credit options
No, because they will look at your credit history and see you don't have a good report
This is the fee charged by lenders for borrowing money, usually expressed as a percentage of the principal.
What is interest (or interest rate)?
On your credit report does it show the amount of debt you have?
yes, so landlords, and car dealerships can see
This financial strategy involves spreading out balances across multiple credit cards to manage this rate effectively.
What is balance distribution (or balance management)?
How do you calculate your credit utilization rate
1. Add up the balances of all your revolving credit accounts
2. Add up the credit limits of all your revolving credit accounts
3. Divide the total balance by the total credit limit
4. Multiply by 100 to get a percentage
A low credit score can increase the cost of this monthly expense, often required by landlords before leasing an apartment.
Rent
This type of loan is secured by the value of your home, allowing you to borrow against your home's equity.
What is a home equity loan (or home equity line of credit)?
Does your SSN show up on your credit report?
yes, to verify your identity
This negative consequence can occur if your credit utilization rate suddenly spikes, even if you make timely payments.
What is a drop in your credit score?