Credit Basics
This is the ability to borrow money with the promise to repay it later.
What is credit?
This is the plastic card used to make purchases with borrowed money.
What is a credit card?
This is a record of your credit history.
What is a credit report?
These are benefits you earn from using a credit card, such as points, cash back, or travel points
What are credit card rewards?
This is a plan for how you will spend and save your money.
What is a budget?
What is the cost of borrowing or earning money, expressed as a percentage.
What is interest?
This is the minimum amount you must pay each month on your credit card.
What is the minimum payment?
This three-digit number represents your creditworthiness.
What is a credit score?
This is a situation where you spend more money just to earn rewards, which can cancel out any benefits.
What is overspending for rewards?
This type of expense stays the same each month, rent or car payment.
What are fixed expenses?
Line of credit established in advance
What is Open‐end credit?
This is the fee charged on unpaid balances, expressed as a percentage.
What is credit card interest
misunderstandings or poor decisions about managing money.
What are errors or mistakes?
These rewards can be redeemed for flights, hotels, or other travel related expenses.
What are travel points?
This is money you earn from sources like a job, allowance, or side work.
What is income?
What is the maximum amount you can borrow on a credit account.
What is a credit limit?
This fee is charged when you fail to make a payment by the due date.
What is a late fee?
This factor has the biggest impact on your credit score.
What is payment history?
This means how much your points or rewards are worth when you use them.
How much rewards are worth?
This is the difference between your income and your expenses in a budget.
What is net income?
Experian, Equifax, and TransUnion?
What are the three credit sources?
Credit cards don't lose the money immediately.
Why may consumers overspend when using a credit card?
This is the percentage of your available credit that you are using.
What is credit utilization?
This is using your rewards in the smartest way to get the most value.
What is using rewards wisely?
This budgeting rule suggests spending 50 percent on needs, 30 percent on wants, and 20 percent on savings.
What is the 50 30 20 rule?