Credit Basics
100:
This is money borrowed now with the promise to pay it back later.
Credit
100:
This document summarizes your borrowing history and financial responsibility.
credit report
100:
This is the three-digit number used to rate your credit risk.
credit score
100:
Utility bills are a common example of this type of credit.
service credit
100:
This term means the annual interest rate charged if you carry a balance.
Annual Percentage Rate (APR)
200:
This advantage of credit lets people spend more money to buy expensive items now and pay over time.
increased purchasing power
200:
These three agencies keep separate credit files on consumers.
Equifax, TransUnion, and Experian
200:
At 35 percent, this is the largest category influencing your credit score.
payment history
200:
A car loan is an example of this type of credit that ends when it's repaid.
closed-end credit
200:
This is the highest amount that can be charged on a credit card account.
credit limit
300:
This common danger happens when using credit makes spending feel too easy.
overspending / spend too much
300:
This section of a credit report may include bankruptcies or foreclosures.
public records
300:
The lesson says you should ideally use only about this percent of your available credit.
30 percent or less
300:
Credit cards are a common example of this reusable type of credit.
"open-end", or "revolving" credit line
300:
This is the least amount required to be paid each month.
minimum payment
400:
These added costs make credit purchases more expensive than paying cash.
interest and fees
400:
Consumers should check reports for these warning signs, such as unfamiliar accounts or addresses.
errors, or signs of identity theft or fraud
400:
Opening many new accounts can hurt your score through this category on your report.
credit inquiries
400:
A card that card uses money directly from your bank account is called:
debit card
400:
This is the time before the due date when you can avoid interest by paying the bill.
grace period
500:
This advantage of credit is especially useful during unexpected circumstances.
emergency funds
500:
Federal law gives consumers one free copy from each bureau each year through this website.
500:
A strong score usually means lenders view you as this kind of borrower.
"low-risk" or "qualified" or "creditworthy" borrower
500:
This is the key difference between open-end and closed-end credit.
open-end can be reused
while closed-end is for a set amount and then closes
500:
This phrase means all if the interest and all other fees added to credit purchases.
finance charges