Intro to Credit
A three-digit number, ranging from 300-850.
Credit Score
These cards earn points, miles, or cash back on purchases.
Rewards Credit Cards
These loans involve collateral, such as a house or a car.
Secured Loans
This type of theft happens when someone steals your personal information.
Identity Theft
A strong __________ has at least 12 characters, with a combination of upper and lowercase letters, numbers, and symbols.
Password
Opening multiple new accounts in a short period of time will do what to your credit score?
Lower Your Credit Score
The cost you pay for borrowing money with your credit card.
Annual Percentage Rate (APR)
Name one type of fee associated with loans.
Origination Fees
Late Payment Fees
Prepayment Penalty Fees
Type of scam that involves fake messages that look real; the scammer often pretends to be your bank or other legitimate institution.
Phishing
These loans don't require collateral and typically come with higher interest rates.
Unsecured Loans
Name one of the three major credit bureaus in the U.S.
Equifax
Experian
TransUnion
The time between the end of a billing cycle and the due date.
Grace Period
This type of interest rate stays the same over time.
Fixed Interest Rate
This adds an extra layer of security by requiring two forms of identification to access your accounts.
Two-Factor Authentication
This type of interest rate changes over time.
Variable Interest Rate
The most critical factor in determining your credit score.
Payment History
Name one downside of a rewards credit card.
1. High Interest Rates
2. Annual Fees
3. Encourages Overspending
4. Complex Terms & Conditions
What should you consider when determining how much you can realistically afford to pay towards a loan each month?
Income vs. Expenses
Debt-to-Income Ratio
Long-Term Financial Goals
Emergency Fund
This is an investment fraud where returns are paid to existing investors from funds contributed by new investors, rather than from any legitimate earnings.
Ponzi Scheme
What should you do if you've been the victim of a financial scam?
2. Contact Credit Bureaus
3. Notify Your Bank & Credit Card Companies
This is the amount of credit you are currently using compared to your total available credit. Keep this number below 30%.
Credit Utilization
Snowball Method
Red flags like exorbitant interest rates, hidden fees, aggressive sales tactics, and targeting people with poor credit history are all signs of this.
Predatory Lending Practices
This is the primary federal agency responsible for protecting consumers from unfair business practices.
Federal Trade Commission (FTC)
This method involves paying off your debts from highest to lowest interest rate.
Avalanche Method