Unit 8 Credit Flashcard

Front

A detailed list of transactions regarding a person's history in borrowing and paying back money

Back

Credit Report

Front

A credit report is best defined by which of the following statements? A score that represents your credit reputation, A summary of an individual's credit history, A compilation of all public and private records relating to your finances, An accounting of legal action taken against you to collect debts

Back

A summary of an individual's credit history

Front

What are you likely to find in a credit report?

Back

Bill Payment History, Current Debt, Types of Credit Used

Front

Property is an example of

Back

Collateral

Front

What is credit?

Back

Ability to borrow money or obtain goods or services before payment

Front

What are the advantages of having good credit?

Back

Lower interest rates on loans, higher chances of loan approval, access to better credit card offers, ability to negotiate better terms on loans, and improved financial opportunities.

Front

What are the disadvantages of having bad credit?

Back

Higher interest rates, difficulty in getting approved for new credit, limited access to financial opportunities, and potential damage to personal and professional relationships.

Front

What are some common factors that can negatively impact a credit score?

Back

Late payments, high credit card balances, maxed out credit cards, applying for multiple new credit accounts, and having a history of delinquent accounts or bankruptcy.

Front

What is the best way to avoid paying interest on a credit card?

Back

Pay off the balance at the end of the month

Front

Your Credit "capacity" is measured using...

Back

Your income and debts