Credit 101
The cost of borrowing money
What is interest?
Automatic bi-weekly, weekly, or monthly contributions to a bank account
What is recurring contributions to increase savings? or What is one way to increase your savings balance? Tip: what you don't see, you don't miss.
A way to spend money that is linked directly to a bank account
What is a debit card?
A retail store gift card (i.e., Wawa, Chipotle)
What is a prepaid card?
$100 million
Equifax, TransUnion, Experian
Who are the three major credit reporting agencies?
Impacts the interest rate that you are charged when borrowing (student loan, car loan, mortgage). It also can impact your ability to rent an apartment and the amount you pay for your cell phone plan.
What is FICO score?
What is a budget?
Paying a credit card balance in full each month
What is how to borrow money without paying interest? What is repaying the amount you borrowed?
An event where visitors are allowed access to college campuses to learn more about it
What is an open house? What is a campus tour? What is an admissions event or prospective student day?
FICO credit score
What many lenders use to assess an individual's credit risk
Where can you access your credit report for FREE? Tip: check each of the three credit reporting agency reports each year for errors.
When spending money, what is a nice thing that satisfies a desire considered?
What is a want?
Typically, a $35 charge per transaction
What is an overdraft fee? This is a fee that banks charge if you take out more money from a savings/checking account than what is in the account.
Academic achievement, talent or skill, ethnicity, community involvement, school activities, or sports are examples of what?
The largest factor contributing 35% to your FICO score
What is payment history?
What do credit reporting agencies do?
When spending money, what is a necessity for everyday needs called?
What is a need?
Less than 580
What is considered a poor FICO credit score? What is considered a risky borrower to lenders.
Direct answer: Share ways that you can protect your identity
Never share your social security number with someone you do not trust (do not give it to someone who calls you, and do not carry your SS card in your wallet). Keep your banking information private. Do not share your passwords. Do not use debit card for online purchases. Check your credit and statements!
This type of interest rate will change when the index changes
What is a variable interest rate?
Money that is used to pay for college that does NOT need to be paid back
What is a grant or scholarship?
Paying your bills on time and being careful about outstanding credit card balances
What is managing credit?
716
What was the average FICO score of US consumers in 2023?
Direct answer: Share something that you learned today
It can be anything that we covered!