Credit Basics
What does APR stand for?
Annual Percentage Rate
How often are you entitled by law, to receive your credit report for free?
Every 12 months (Annually)
What is the difference between APR and APY?
APR you pay the interest, APY you are the one being paid the interest.
A loan provided by the U.S. government.
What is a federal loan?
A person who guarantees to pay a borrower's debt if they default is known as this.
A co-signer
A 3 digit number reflecting how likely you are to pay back debt.
What is a credit score?
The 3 major credit card networks are Visa, Mastercard, and this one.
What is American Express OR Discover?
What is another word for an unsecured loan?
Signature loan
The maximum amount of money a credit card company will allow someone to borrow.
What is a credit limit?
Types of different credit accounts you have. (Mortgage, loans, credit cards, etc.)
What is a credit mix?
The process of transferring balances from one credit card to another, usually to take advantage of lower interest rates.
What is the difference between a secured and unsecured loan?
Secured requires collateral, unsecured does not.
How does having a loan sent to a collections agency affect your credit score?
Decreases
What is the credit score range?
300 - 850
A fee charged by credit card companies for using the card to withdraw cash from an ATM or bank.
How does getting a loan affect your credit score?
Making on time payments improves credit in the long-run, but it will initially lower it.
What are the three credit reporting agencies? (CRAs)
Equifax, Experian, and TransUnion
What are 3 of 5 ways a credit score is calculated?
Payment History
Payments Owed
Length of Credit History
New Credit
Credit Mix
A practice by some credit card companies where they increase a cardholder's credit limit without the cardholder's request.
What is a credit limit increase OR credit line increase?
Finance charges consist of what 2 parts?
Interest and Fees
The name of the time period when you can pay your credit card bill before interest gets charged.