Unit 7: Credit Score {Day 1}

A number assigned to a person that indicates how likely they are to repay a loan

A statement of a person's credit activity, accounts and credit score

The amount of credit a person is using compared to their credit limit

The maximum amount of money a person can borrow

The last day of a person's billing cycle and the day the statement is sent to the person

A request by a bank or other institution to view a person's credit report

A fixed amount of money to be repaid on a set schedule

On-time payments are worth the largest percentage (35%) of our credit score

When we're late paying a bill, how many years will that late payment stay on our credit report?

The ratio of your outstanding credit balance (on both credit cards and lines of credit) compared to your overall credit limit combined across your accounts make up which part of our credit report?

Credit Utilization is higher when we use less of our allotted credit: such as you have card that has a $1000 limit, but only ever use $100 of it

Age of Credit History: people with longer credit histories tend to have access to more lines of credit with lower interest rates (granted payment history and utilization are in good standing)

Credit inquiries and hard credit checks can lower your credit score by 5-10 points for about 1 year

Types of Credit: Credit cards both secured and unsecured are which type of credit?

Types of Credit: Car loans, mortgages and the like are which type of credit?