Credit Basics
This is the cost of borrowing money, usually expressed as a percentage
What is interest?
This is a commonly used number used by lenders, ranging from 300 to 850.
What is a credit score?
This is the yearly interest rate charged on outstanding credit card balances.
What is APR (Annual Percentage Rate)?
This is a person who signs for a loan with you and agrees to pay the debt if you fail to do so.
What is a co-signer?
This Marvel superhero's secret identity is Peter Parker, a high schooler who gained powers from a radioactive bite.
Who is Spider-Man?
This is the maximum amount of money a lender will allow you to borrow on a specific card or line of credit.
What is a credit limit?
This is the most important factor in calculating your credit score, accounting for 35% of the total.
What is payment history?
This is the smallest amount you must pay by the due date to avoid late fees and keep your account in good standing.
What is the minimum payment?
This is the negative result of paying only the minimum payment on a credit card.
What is increased total interest cost (or staying in debt longer)?
This app was originally launched in China under the name "Douyin."
What is TikTok?
This term refers to the original amount of money borrowed or the amount still owed on a loan, separate from interest.
What is the principal?
According to federal law, you are entitled to one of these for free every 12 months from each of the three major bureaus.
What is a credit report?
A type of card intended for people with poor or no credit that requires a cash deposit as collateral.
What is a secured credit card?
Daily Double! (You can wager any amount of your current points on this question)
This is a legal process where a court orders an employer to withhold a specific portion of a person's paycheck to pay off a debt.
What is wage garnishment?
Botanically speaking, this curved fruit is actually classified as a berry.
What is a banana?
A loan that is backed by collateral, such as a house or a car, to reduce the risk for the lender.
What is a secured loan?
This factor, which makes up 30% of your score, looks at how much of your available credit you are currently using.
What is credit utilization?
The process of moving debt from one credit card to another, often to take advantage of a lower interest rate.
What is a balance transfer?
This strategy involves paying off the debt with the smallest balance first to build momentum.
What is the Snowball method?
The logo for this massive chain features a "Siren", a twin-tailed mermaid from Greek mythology.
What is Starbucks?
This is the amount of time you have to pay your credit card bill in full before interest starts to accrue.
What is the grace period?
This type of inquiry occurs when you apply for a new loan or credit card and can slightly lower your credit score.
What is a hard inquiry?
This fee is charged if a cardholder uses their card to withdraw cash from an ATM.
What is a cash advance fee?
This strategy involves paying off the debt with the highest interest rate first to save the most money over time.
What is the Avalanche method?
Known as a "monotreme", this is one of the only two species of mammals in the world that lay eggs.
What is the Platypus?