Credit
This three-digit number summarizes your credit risk to lenders.
Credit Score (FICO Score)
This three-letter acronym represents the total cost of borrowing money on a credit card over the course of a year, including interest and fees
This budgeting practice advocates saving BEFORE paying any bills
"Pay Yourself First"
This type of mortgage features an interest rate that stays the same for the entire life of the loan
Fixed Rate Mortgage
This is the fixed amount the policyholder must pay out-of-pocket before the insurance company starts covering the costs
Deductible
What is the low end & high end of FICO Credit Scores
300-850
Name 3 things to examine when shopping for a Credit Card
Annual Fee
APR
Perks
In the popular 50/30/20 budget plan, identify the categories for each of the numbers.
50% Needs
30% Wants
20% Save
f your home is worth $500,000 and you owe $350,000, this is the dollar amount of your equity
$150,000
In health insurance, this is the flat fee you pay at the doctor's office (e.g., $25)
Copay or copayment
Name & explain 3 of the "C's" of Credit
"Capacity" to pay
Character (Credit History)
Collateral
(Capital)
This is the maximum amount of money a lender allows you to borrow on a single card.
Credit Limit
This detailed budgeting method requires you to assign every single dollar of your income to a specific category
Zero Based Budget
What is meant by a 5/1 ARM?
Mortgage rate is fixed for 5 years then adjusts annually with the market
Unlike "Whole Life," this type of life insurance provides coverage for a specific period of time and does not build cash value
Making up 35% of your total score, this is the most influential factor in determining your FICO credit rating.
Payment History (Paying on time)
This three-digit security code, usually found on the back of a credit card, stands for "Card Verification Value".
CVV
This term refers to the total amount of money you take home after taxes and deductions are removed from your paycheck.
Disposable Income
What is the most popular mortgage package in the USA?
30 Year Fixed Rate Mortgage
This "Protective" policy provides an extra layer of liability limits above and beyond your standard auto and home policies.
Umbrella Policy
To maintain a healthy credit score, experts recommend keeping this "ratio" below 30%.
Credit Utilization Ratio
Closing an old, unused credit card can actually hurt your score by reducing this specific factor
Length of Credit
This term refers to the amount of money you have left after taxes, deductions and been removed from your check AND bills have been paid (nicknamed "Spending Money")
Discretionary Income
This term describes the difference between the current market value of your home and the amount you still owe on your mortgage.
Equity
This is the specific amount of money an individual or business pays periodically to keep an insurance policy active
Premium