what a credit score is
What is the most important factor, and takes up 35% of your credit score
payment history
You should keep your available credit under what percent to maximize your credit score
30%
True or false: It is good to build up credit from a young age.
true
What can you get from having a higher credit score?
Cheaper housing, lower interest rates, etc
How can you check your credit score
Though credit card companies or financial institutions
Measures the amount of credit you use compared to the total available credit.
amount owed/credit utilization
If your credit is low and someone signs with you, what are they called
co-signer
You can get a lower interest rate with this.
good credit score
What happens with a lower credit score?
You aren’t as reliable, with higher interest rates
What is a card the you put only a certain amount of money on
per-paied debit card
How long an account has been open adds to this.
length of credit history
What should you do at least once a year to make sure there are no errors with your credit
Check credit report
What does credit history track
Amounts owed and the length of time you’ve had credit accounts
What determines a person's ability to borrow?
How high their credit score is and whether they are reliable.
What the consequences of having a thin file?
It can make it hard to get a loan or credit cards
When you have different types of credit, it is called
credit mix
Unlike a credit card, this card takes money directly out of your account.
What is a debit card
How late does your payment have to be to affect you
30 days
Does your credit score affect your insurance?
yes, depending on how low or high you get better or worse
When it is a good idea to borrow (take on credit)
To achieve a financial goal or to improve your standings
Opening new accounts lowers your score. This is called.
new credit
when you take out a masive loan from one source and pay off the rest of your debt it is called what?
debt consolidation
What is a good way to start building credit if you have none
Getting a secured credit card
What factors influence your credit score
Payment history, length of credit history, and credit utilizaiton
Why is credit utilization important?
It can impact your credit score