Credit Basics
What is credit?
Borrowing money you pay back
What factor is most important?
Payment history
What is a credit report?
Record of your credit history
What is a debt collector?
Collects money owed
Pay more than what?
Minimum payment
What is principal?
Original amount borrowed
What percent is payment history?
35%
Name one credit bureau
Experian / Equifax / TransUnion
What happens if you don’t pay?
Collections / credit damage
What should you create to manage money?
Budget
What is interest?
Cost of borrowing money
What lowers your score?
Late payments
What are inquiries?
Who checked your credit
What is wage garnishment?
Money taken from paycheck
One way to build credit?
Secured card / small loan
What is collateral?
Something taken if you don’t pay
What is a good credit utilization?
Under 30%
How long do late payments stay?
7 years
What can be repossessed?
Car
What should you lower?
Interest rate / debt
What is predatory lending?
Unfair/deceptive loans
What happens if you open too many accounts quickly?
Score drops
What should you do if something is wrong?
Dispute it
What can happen to your bank account?
Frozen
What fund should you build?
Emergency fund