Credit Basic
This is the "cost of borrowing" money, usually expressed as a percentage.
What is interest?
This is the range for a standard FICO credit score.
What is 300 to 850?
Name the "Big Three" credit bureaus that track your history.
Who are Equifax, Experian, and TransUnion?
This 3-letter acronym represents the total yearly cost of your credit card, including interest.
What is APR?
This type of inquiry happens when you apply for a loan and can lower your score.
What is a Hard Inquiry?
An asset (like a car or house) that a lender can take if you don't pay back a loan.
What is Collateral?
This specific factor is the most important, making up 35% of your total score.
What is Payment History?
This federal law allows you to get one free credit report from each bureau every year.
What is the Fair Credit Reporting Act?
The period of time (usually 21–25 days) where you aren't charged interest if you pay your full balance.
What is a Grace Period?
A legal process where a person or business declares they cannot pay back their debts.
What is Bankruptcy?
This type of credit involves a fixed number of payments for a specific amount, like a car loan.
What is Installment Credit?
You should keep your credit utilization at or below this percentage. (Answer: What is 30%?)
What is 30%?
This is the official (and only) website for getting your free government-mandated credit report.
What is AnnualCreditReport.com?
A credit card that requires a cash deposit to act as collateral.
What is a Secured Credit Card?
A person who signs for a loan with you and is 100% responsible for the debt if you don't pay.
What is a Co-signer?
This type of credit has no fixed number of payments and can be used over and over, like a credit card.
What is Revolving Credit?
If you have a $1,000 limit and a $200 balance, this is your utilization percentage.
What is 20%?
This is the formal process of telling a credit bureau that information on your report is wrong.
What is a Dispute?
This happens when a lender "writes off" your debt as a loss because you haven't paid in 6 months.
What is a Charge-Off?
When a lender takes money directly from your paycheck to pay back a debt.
What is Wage Garnishment?
The formal name for a "background check" on your financial history.
What is a Credit Inquiry?
These are the two newest factors that some scores now include to help people with no credit history.
What are Rent or Utility payments?
Negative information (like a late payment) usually stays on your report for this many years.
What is 7 years?
If you only pay this amount on your card each month, you will stay in debt the longest. (Answer: What is the Minimum Payment?)
What is the Minimum Payment?
High-interest, short-term loans that often trap people in a "cycle of debt."
What are Payday Loans?