Credit Basics
The ability to borrow money or access goods or services now with the understanding that you will pay later.
What is credit?
The minimum numerical value for credit scores from the three major credit reporting agencies.
What is 300?
The factor that looks at how long you've had your credit accounts open.
What is length of credit history?
Making these on time is the single biggest factor in building a good credit score.
What is on time payments?
A strong credit history improves access to these with better benefits and higher limits.
What are credit cards?
This three digit number tells lenders how risky it might be to lend you money.
What is a credit score?
The largest numerical number for credit scores from the three major reporting agencies.
What is 850?
This has the largest impact on your credit score?
What is payment history?
Using less than this percentage of your credit limit can help improve your credit score.
What is 30%?
Good credit increases chances of having favorable terms for this type of loan when you buy a vehicle.
What is a car loan?
Paying only this amount on your credit card bill will cause you to pay more interest over time.
What is the minimum payment?
670-739 is considered as what range for a credit score.
What is good?
Opening too many of these in a short period of time can lower your credit score.
What are new credit accounts?
Do not attempt to open up multiple ones in a short period of time.
What is new accounts?
These people may consider credit history during hiring.
Who are employers?
The better your credit score, the lower the _________.
What is interest rate?
These impact loan approval rates, interest rates and rental agreements significantly.
What is your credit score?
The second largest impact on your credit score.
What is the amount of debt you owe?
What is authorized user?
The cost of credit
What is interest rates?
The maximum amount of money a lender will allow you to borrow on a credit card.
What is credit limit?
Fair Isaac Corporation is the company that created this to standardize credit scoring and help lenders assess credit risk.
What is the FICO score?
Revolving Credit, Installment Loans, Open Credit
What are types of credit?
It helps you get loans with better interest rates and can save you money.
What is a high credit score ?
Understanding and managing credit helps avoid limitations on these types of opportunities.
What are Financial and Career Opportunities?