Credit v. Debit
A card that takes money directly from your banking account. `
What is a debit card?
The amount you are required to pay on your credit card account.
What is a minimum payment?
The number of factors on your credit score.
What is 5?
The amount of money you borrow.
What is principal?
A plan for how to use your money usually on a monthly basis.
What is a budget?
A card which allows you to make purchases and pay back later with interest.
The total amount you own on your credit card for a billing cycle.
What is your new balance?
One factor for your credit score which looks at your record for paying debts and expenses.
What is payment history?
The arrangement you make to pay back your loan.
What is a repayment plan?
You are supposed to use 30% of your budget for this.
What are wants?
Institutions that allow you to get a credit card.
What are financial institutions (banks and credit unions)?
The maximum amount you can charge on your credit card.
What is the credit limit?
Someone who agrees to guarantee a loan if you cannot get the loan based o your own credit.
What is a cosigner?
What is a credit score?
The percentage of your budget reserved for savings.
What is 20%?
What is interest?
Your credit limit minus your new balance.
What is available credit?
The name given to the highest category of credit scores.
What is a prime score?
What you pay in addition to principal on your loan.
What is interest?
50% of your budget should be used for this category.
What are needs?
Fees charged if your credit card is not paid on time.
What are late fees?
The typical amount of days for a billing cycle.
What is 30 days?
The highest score you can typically have for your credit score.
What is 800?
The length of a loan.
What is a term?
The amount from this category is what you should use to make your 50/30/20 plan.
What are needs?