Personal Finance Unit 4 Jeopardy

Building Credit

100

Lower interest rates, better chances of approval, and bragging rights are all the results of having this

A good/high credit score

200

This is someone who's been added to a credit card by the card's owner and can make purchases with it

Authorized User

300

This website is where you can check important credit info for free once a year

Annualcreditreport.com

400

This is when a lender checks your credit as part of a loan or credit card application

Hard inquiry

500

These are the 3 credit bureaus

Equifax, Experian, Transunion

Credit Destruction

100

This allows you to legally remove liability for some or all your debts

Bankruptcy

200

This occurs when you default on your auto loan

Repossession

300

This is when you default on your mortgage and lenders repossess your home

Foreclosure

400

This is when credit card issuers write off your debt as uncollectible

Charge-offs

500

This is a last resort for those who face overwhelming debt but cannot or do not want to qualify for bankruptcy  

Debt settlement

Credit Scores

100

This is the highest a credit score can be, but at this point its just bragging

850

200

This is the lowest a credit score can be

300

300

This is the most commonly used credit scoring model that is represented by an acronym 

FICO

400

This makes up 35% of your credit score

Payment History

500

This prevents organizations who extend credit from denying you based on race, ethnicity, or other categories unrelated to your credit history

Equal Credit Opportunity Act

Managing Debt

100

According to this strategy, you should pay off your debt by interest, highest being first

High Rate Method

200

According to this strategy, you should pay off your debt by balance, lowest being first

Snowball Method

300

Some mortgages or loans have these if you pay MORE than the minimum

prepayment penalties

400

Looking for this offer on a new credit card means no interest during the introductory period 

0% Balance Transfer

500

This is when you combine all loans into one singular loan

Consolidation loan

More on Scores

100

This compilation of your information is used to determine your credit score

Credit Report

200

Doing this is the #1 best way to improve your credit score

Make payments on time

300

This is the result of having little to no information to receive a credit score

Thin Credit File

400

Backed by a security deposit, this line of credit is designed for people who want to rebuild credit or have a lack thereof credit history

Secured Credit Card

500

Given you have no credit history, your credit score will be this amount

A-HA! You don't have one