Credit Basics
Q: The definition of credit—money a lender gives a borrower to be repaid later—refers to this.
A: What is credit?
Q: This type of credit is short-term, usually 30 days or less.
A: What is non-installment credit?
Q: These organizations collect and maintain your credit information.
A: What are credit bureaus?
Q: This occurs when someone uses your personal information without permission for personal gain.
A: What is identity theft?
Q: The fee charged by a lender for borrowing money is called this.
A: What is interest?
Q: This type of credit includes fixed monthly payments over a set period, like a car loan.
A: What is installment credit?
Q: This document summarizes your current and past credit behavior.
A: What is a credit report?
Q: This identity theft tactic occurs when someone watches or listens to your personal info in public.
A: What is shoulder surfing?
Q: This is the reason it's important to build good credit early in life.
A: What is qualifying for lower interest rates on major purchases?
Q: This part of a loan refers to the total amount still owed.
A: What is principal?
Q: The three major credit bureaus in the U.S. are these.
A: What are Equifax, Experian, and TransUnion?
Q: This tactic uses devices to copy credit or debit card numbers.
A: What is skimming?
Q: These are the big-ticket items most people first need credit for.
A: What are cars or houses?
Q: Credit cards fall under this category.
A: What is revolving open-end credit?
Q: This score, when around 700 out of 850, is considered “good.”
A: What is a good credit score?
Q: This tactic tricks you using fake communication to obtain your information online.
A: What is phishing?
Q: Nancy (from the story) may struggle to get a low-rate loan because she lacks this.
A: What is an adequate credit history?
Q: This type of credit is often the most mismanaged because minimum payments don’t cover interest.
A: What is revolving credit?
Q: One reason lenders charge higher interest to people with poor credit is because credit history shows this.
A: What is how well you handle financial responsibilities?
Q: This tactic redirects you from real websites to fake ones using viruses.
A: What is pharming?