Credit Basics
The two main types of credit
What is Revolving and Installment Credit?
The main drawback of credit cards
What is compound Interest?
a three-digit number that reflects the likelihood a consumer will repay their debts. This shows how trustworthy a consumer is.
This type of credit check harms your credit score
What is a Hard Inquiry?
This type of credit when held too much of its bad for your health
What is Revolving Credit?
The third type of credit that is consider bad
Alternative credit
A Penalty APR can be as high as this percent
What is 29.99%?
a record of the borrowers past lending and credit-related activities.
What is Credit History?
Too many of this is bad for your credit score
What is Credit Cards?
Debt that you've defaulted on, Credit card or payday loan debt, Tax debt, and Student loan debt are the worst type of
What is Debt?
the cost of credit is expressed in terms of this
What is Interest Rate
a derogatory term that credit card companies call users who pay off credit card balances in full each month.
What is a deadbeat?
Most common credit scoring model.
What is FICO 5
Myth: FICO is the one, true credit score. The truth behind this is
What is FICO is the most common but there are dozens of companies producing credit score models?
Closed ended credit uses this type of interest
What is simple Interest?
the cost of credit is measured by this
What is APR?
A company has performed a soft credit check on you and if you pass this process you have passed the first step in the screening process: This process is this overall a part of
What is Pre-Approved Application
name, address, social security number telephone number, date of birth, employment history appear on this
What is a Credit Report?
Myth: It takes forever for a Credit Score to Budge. The truth behind this myth is
What is Poor credit scores are relatively easy to improve?
Establishing credit history, buying a house, paying for a car, anything work or school related. These are considered ___ uses of credit
What is good uses of credit?
the money leftover after ALL living expenses have been paid
What is Discretionary Income
credit card issuers are required to disclose the terms and fees of each credit card offer in an easy to read box.
What is Schumer Box?
Experian, Equifax, and Trans Union are this
What is Major Credit Reporting Agencies (CRA’s)?
Myth: My Credit Score Affects Future Job Opportunities. The truth behind this myth is
What is potential employers don’t look at your credit score?
Your credit score matters most in this 10 year period of your life
what is your 20's?