Credit Cards
This is the maximum amount you can borrow on a credit card.
What is a credit limit?
This bias involves favoring information that confirms what you already believe.
What is confirmation bias?
This budgeting rule divides your income into 50% needs, 30% wants, and 20% savings or debt payments.
What is the 50/30/20 rule?
This is when prices in the economy actually go down instead of up.
What is deflation?
This number, ranging from 300 to 850, indicates how likely you are to repay debt.
What is a credit score?
This bias causes people to stick with decisions they've already invested time or money into, even when it's irrational.
What is the sunk cost fallacy?
This strategy involves assigning every dollar a specific purpose before the month begins.
What is zero-based budgeting?
This happens when the inflation rate is still positive, but it's going up more slowly than before.
What is disinflation?
The percentage of your credit limit that you're currently using is called this.
What is the credit utilization ratio?
When someone relies too heavily on the first piece of information they receive, they may be falling for this bias.
What is anchoring bias?
his method treats saving as a non-negotiable "expense" by setting it aside first.
What is pay yourself first?
his is the total amount of money you owe on your card at a specific moment.
What is your credit card balance?
This is a piece of ownership in a company that can rise or fall in value.
What is a stock?
Rent and car payments are examples of this type of expense, which stays the same every month.
What are fixed expenses?
This document provides a monthly summary of your credit behavior, including transactions and payments.
What is a credit report?
This term describes a general increase in prices across an economy over time.
What is inflation?
This type of expense might occur only once or very rarely, such as a medical bill or home repair.
What is a non-recurring expense?