Payment History
One of the most important factors that contributes to your credit score is your ___________________________, which records how timely you have been in paying off different lines of credit.
Payment History
What's one consequence if you don't pay your outstanding balances in full?
Interest compounding/Interest
No, if they make bad descions, it will lower your credit score
Why might an adult not even have a credit score?
They don't have any credit history at all, (or answer varies).
Is a checking account a form of credit?
no
No, theyre not a form of credit.
What's the difference between a secured and unsecured loan?
How long does it take to start a credit history/score on average?
3-6 months
Your ___________________________ is a 3-digit number, typically between 300-850, that potential lenders, landlords, and other parties may refer to.
Credit Score
are loans a form of credit?
yes
True or false? Do companies like when you finish paying for things?
Yes
Describe the high-rate method
Paying on your debts by paying the ones with the highest interest first and the others the minimum.
when you know they're reliable without being biased.
After becoming a(n) ___________________________ on her parent’s credit card, Clara was able to make purchases and build her credit under their credit line.
Authorized User
Which isn't a credit account? credit cards, mortgages, auto loans, debit cards, student loans, and Payday loans.
Debit cards
What happens to your credit score when you fail to pay on time?
it goes down
Describe what happens when someone doesn't pay their mortgage or auto loan?
Credit score drops and reposession of your car/home
How can you build credit when you're first starting out?
Getting a credit card and paying it in full by buying small things
True or false: Applying for 5 new credit cards in 2 months raises your credit score
False
Keeping her credit card balance low relative to the credit limit helped Lisa improve her __________________________, a key factor in calculating her credit score.
Credit Utilization
What perctage of your credit score is made up by your payment history?
35%
To manage her debts more effectively, Emily listed them from smallest to largest balance and focused on paying off the smallest first, using the ___?
Snowball Method
What percentage of your credit score is made up by your length of credit history?
15%
What percentage of your credit score is made up by your new credits?
10%
How can you take advantage of credit utilization
Open more credit cards and either not use them, or pay them off in full every time. (Or answer varies)