Vocab
The least amount of money that you are required to pay toward your current credit bill each month.
What is the Minimum Payment?
Some cards require this yearly fee, even if you don't use the card.
What is annual fee?
The three credit agencies that keep credit reports and files on consumers.
What is TransUnion, Equifax and Experain?
A point value of how well you have handled credit in the past, and how you may handle credit in the future.
What is a credit score?
Extra money in the form of fees and interest that a consumer pays in addition to the amount borrowed.
The date your payment is due. If you are even one day late, you may have to pay a late fee penalty.
What is due date?
The highest amount of money that can be charged on your credit card account. If your balance goes over limit, you can be charged a penalty for using more than you are allowed.
What is Credit Limit?
The term that means how trusted you are to repay borrowed money
What is creditworthiness?
A three-digit number rating a consumer as a credit risk, a measure or "grade: of creditworthiness.
What is Credit Score?
The reason you may have three different credit scores
What is a different formula for the three credit agencies?
The annual interest rate you will be charged if you carry a balance on your card. This rate is applied each month that you carry a balance.
What is Annual Percentage Rate (APR)
A fee charged when your balance goes over your credit limit.
What is an over-the-limit fee?
How purchasing power is an advantage of using credit
What is raising your standard of living by allowing you to buy expensive, big-ticket items that you may not currently have enough money to buy?
The five main categories of credit scores
Ways to improve your credit score.
What is paying your bills on time, keeping balance manageable, paying the minimum monthly payment, only applying for new credit accounts when you need them or not applying for a lot of new accounts in a short period of time?
The time period before the due date that you are allowed to pay your bill without having to pay interest. This time period typically lasts from purchase date until next due date.
What is free period or grace period?
This is also known as a "teaser rate". It is the APR you will be charged for the first several months after getting a new credit card. They are often low to attract new customers. Then after the first few months the APR adjusts to a different rate which is sometimes very high.
What is Introductory Rate?
An agreement to receive a service now and pay for it later.
What is service credit?
If you have a good credit score, you're more likely to be offered these things.
What is a job, loans with better terms or low rates on car insurance?
What is a low-risk borrower?
A type of credit that can be used repeatedly with the option of paying the balance in full or making monthly payments. Most credit cards are this type of credit.
What is revolving credit?
A type of credit that cannot be used again after the balance is paid off, like a car loan.
What is non-revolving credit?
After paying off the balance, this type of credit remains open to be used again.
What is open-end credit?
A credit score is also known as a
What is a FICO score?
This is how I can protect myself from credit fraud ...
What is checking credit reports frequently? What is shredding all documents with credit information? What is using strong passwords?