Types of credit
What type of credit is used when you buy something now and agree to pay for it later
Credit
What type of credit is a mortgage an example of loan or credit line?
loan
What's the first thing you should check before applying for credit?
your credit score
What is credit history
A record of how you used credit in the past
what is the simplest way to improve your credit score?
paying bills on time
Name a type of credit that would likely be used to buy a house.
Mortgage loan
Is a credit card an example of a loan or revolving credit?
revolving credit
What is a credit limit?
the maximum amount you can borrow on a credit card
what is a credit report
A detailed summary of your credit history
why is it good to keep old credit accounts open?
it helps maintain a longer credit history
True or false: Secured credit requires collateral/like a car loan where the car is used as security
true
Which generally requires a minimum monthly payment that changes based on balance: Loan or credit card?
credit card
Name a factor that could impact your credit score.
payment history or credit usage
How long do late payment stay on your credit report?
7 years
How does paying off collections accounts affect your credit score?
it can improve your score by reducing debt
What type od credit might involve paying off the entire balance in one installment afer using it, such as a utility bill?
Non-revolving credit
If you need acess to funds as needed, which is better: loan or line of credit?
line of credit
What does ARP stand for and what is it?
Annual percentage rate, The interest rate on borrowed money
why is long credit history beneficial?
it shows lenders you have experience manging credit
it lowers your credit utilization
What type of credit does not require collateral and is often offered with personal loans or credit cards?
Unsecured Credit
Which generally charges intrest only on the amount used: loan or credit line?
credit line
What is a cosigner?
a person who guarantees a loan
How long does bankruptcy stay on your credit repost ?
10 years
What is secured credit and how can it helpbuild credit?
A card backed by a diposit that helps build credit through responsible use