Money Basics
A plan for how you will spend your money.
What is a budget?
Credit score of 850.
What is the maximum credit score?
Credit score of 300.
What is the lowest credit score you can have?
Document that outlines the details of all of your credit/loan history.
What is your credit report?
3-6 months.
How long does it take to establish a credit score?
Earning interest on interest.
What is Compound Interest
Person that can help an individual, with no credit, get approved for a loan.
What is a co-signer?
Percentage of your total credit used from the total credit available to you.
What is credit utilization?
Credit score most often used by lenders to determine credit eligibility.
What is a FICO score?
A loan that has collateral to cover any losses in the event that the barrower does not make the required payments.
What is a secured loan?
Term used to describe the loss of purchasing power of a dollar.
What is inflation?
Interest rate you pay or earn calculated on a yearly schedule.
What is Annual Percentage Rate (APR)
A loan where the interest rate can change based on economic conditions.
What is a variable (adjustable) rate loan?
Someone who is allowed to use the credit card of another person for the benefit of improving their own credit score.
What is an authorized user?
A type of credit that allows a borrower to access funds up to a certain limit, repay the borrowed amount, and then borrow again.
What is revolving credit?
Maximum amount of money that a bank will insure per account.
What is $250,000 FDIC insurance?
A loan that is paid off in multiple set increments over time.
What is an installment loan?
Debt that cannot be erased, even if you file for bankruptcy.
What is student loan debt?
When someone checks your credit score but it does not hurt it.
What is a soft credit pull (check)?
Account that does not allow more than 6 withdrawals per month without incurring a penalty.
What is a savings account?
The three main credit bureaus.
What are Experian, Equifax, and TransUnion?
The single action that could lower your credit score the most.
What is missing a payment?
Failure to repay a loan or meet the terms of a credit agreement after a specified period of missed payments.
What is credit default?
Event that can stay on your credit report for 10+ years.
What is bankruptcy?