Credit

Credit Basics

100

This is borrowing money with the promise to repay it later.

Credit

200

This person or company lends you money.

Creditor/or Lender

300

This is the maximum amount of money you are allowed to borrow on a credit card.

Credit Limit

400

This is the record of your borrowing and repayment behavior.

Credit History

500

This report shows detailed information about your credit accounts and payment history.

Credit Report

Credit Cards

100

This is the interest rate charged on a credit card balance.

APR

200

This is the smallest payment you must make each month to keep the account in good standing.

Minimum Payment

300

This is what you can do each month to avoid interest.

Pay in full

400

This fee is charged when you pay your credit card late.

Late Fee

500

The name of the chart that shows you your payments and how much goes to the principal and interest during each payment over the lifespan of the loan.

Amortization Schedule

Credit Scores

100

Credit scores usually range from this number to this number.

300-850

200

This is the most important factor affecting your credit score.

Payment History

300

Using too much of your available credit hurts your score. This is called this.

Credit Utilization 

400

Checking your own credit score will affect your score in this way.

It does not hurt your score (soft inquiry)

500

Missing payments for 30+ days can do this to your credit score.

Lower it significantly

Loans & Interest

100

This type of loan is used to buy a car.

Auto Loan

200

This is money charged by the lender for borrowing.

Interest

300

This loan is used to purchase a home.

Mortgage

400

This type of interest is calculated on both the principal and previously earned interest.

Compound Interest

500

This happens when you fail to repay a loan according to the agreement.

Default

Smart Credit Use

100

You should try to keep your credit utilization below this percentage.

30%

200

This is the best way to avoid paying interest on a credit card.

Pay the full balance every month

300

Opening many new credit cards at once can do this to your credit score.

Lower it

400

This habit helps build strong credit over time.

Making on-time payments

500

This strategy involves using credit responsibly while keeping balances low and paying on time.

Building credit