Credit Basics
The ability to borrow money or access goods or services with the understanding that you'll pay later.
What is the definition of credit?
A credit card is an example of this type of credit.
What is revolving credit?
A typical credit score ranges from this low to high number.
What is 300 to 850?
The amount of money you actually take home after deductions.
What is net pay?
The percentage of your paycheck taken out for Social Security.
What is 6.2%?
A record of a person’s credit history, including loans and payments.
What is a credit report?
The type of credit used for buying a house.
What is a mortgage?
The most commonly used credit scoring model.
What is the FICO score?
This is the total amount of money earned before any deductions.
What is gross pay?
This acronym represents the payroll tax that funds Social Security and Medicare.
What is FICA (Federal Insurance Contributions Act)?
The term for money borrowed that must be paid back, usually with interest.
What is a loan?
This appears on a paycheck stub and represents how much you've made year-to-date.
What is an installment loan?
The biggest factor that affects your credit score.
What is payment history?
This appears on a paycheck stub and represents how much you've made year-to-date.
What is year-to-date earnings?
The tax deducted for healthcare benefits for people 65 and older.
What is Medicare tax?
A measure of a person's ability and willingness to repay a loan.
What is creditworthiness?
The difference between a secured and unsecured loan.
What is a secured loan requires collateral, while an unsecured loan does not?
The length of time a missed payment stays on your credit report.
What is seven years?
A unique identification number assigned to employees for tax purposes.
What is an employee identification number (EIN) or Social Security number?
A tax form filled out by employees to determine how much federal income tax is withheld.
What is a W-4 form?
The three major credit bureaus that track your credit history.
What are Equifax, Experian, and TransUnion?
A store credit card is an example of this type of credit.
What is retail credit?
The name for checking your own credit report without affecting your score.
What is a soft inquiry?
The line on your paycheck that shows what your employer is taking out for health insurance.
What is health insurance deduction?
The type of tax that is taken out of your paycheck for state programs.
What is state income tax?