Credit Basics
This three digit number determines how trust-worthy you are as a borrower.
What is a credit score?
This is maximum amount of money your credit card company allows you to borrow.
What is Credit Limit?
This three digit number ranges from 300-850.
What is Credit Score?
Articles on paycheck basics explain that this form-filled out when you start a job, tells employer how much tax to withhold.
What is Form W-4?
This federal agency is responsible for collecting taxes and enforcing tax laws.
What is the IRS?
Making these on time each month helps raise your credit score a lot.
What is payment history?
Paying this in full every month allows you to avoid interest.
What is Statement Balance?
Checking your own credit score through and app or bank is an example of this type of inquiry.
What is a Soft Inquiry?
Sent by your employer in January, reports your total earnings and taxes withheld for the year.
What is a W-2?
This tax is taken directly from your paycheck and goes forward funding retirement and disability benefits.
What is Social Security tax?
These three major companies, Equifax,Experian an TransUnion collect your financial history to create this document.
What is a Credit Report?
Thus annual percentage represents the cost of borrowing money on your card.
What is APR?
A FICO score in this range is typically considered "very poor" preventing borrowers from getting loans.
What is 300-579?
This document is the min federal tax return file each year to calculate how much they owe.
What is form 1040?
This is the most commonly used federal income tax return form individuals filling their yearly tax.
What is Form 1040?
Experts recommend keeping this percentage below 30%
What is Credit Utilization?
These types of cards offer points,cash back,or miles.
This negative event, often lasting seven years on your report.
What is a Charge-Off?
If you paid interest on student loans, servicer send form so you can deduct interest.
What is form 1098-E
When too little tax is withheld from each paycheck.
What is a Tax Liability?
This type of debt strengthens your credit mix.
What is Installment Credit?
This hidden penalty triggers when you miss payments raising your APR.
What is a Penalty APR?
This lesser known scoring model, used heavily by auto lenders and credit card companies.
What is VantageScore?
When you take out money from a retirement account like a 401k the distribution is reported on this form.
What is Form 1099-R
Where did Mr.English work?