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What is a credit score?

Back

A credit score is a numerical representation of a person's creditworthiness, based on their credit history and financial behavior.

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How does having debt affect wealth building?

Back

Having debt can hinder wealth building as it reduces disposable income and can lead to high interest payments.

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What is the consequence of spending more than you earn?

Back

Spending more than you earn can lead to missed opportunities to save and invest, increased stress, and a cycle of debt.

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How often can you request a free credit report from each of the three credit bureaus?

Back

You can request a free credit report once a year from each of the three credit bureaus.

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CCSS.7.RP.A.3

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What is the impact of learning the language of money?

Back

Learning the language of money is crucial for making informed financial decisions and not relying solely on others.

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CCSS.RI.11-12.2

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Front

What was a significant change in consumer borrowing after WWII?

Back

After WWII, Americans learned to borrow more due to increased prosperity and availability of credit.

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CCSS.RI.11-12.2

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CCSS.RL.11-12.2

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Front

What is the role of banks in consumer lending?

Back

As banks make profits, they tend to lend more money to consumers, which can increase overall consumer debt.

Front

What does a high credit score indicate?

Back

A high credit score indicates a strong credit history and a lower risk for lenders.

Front

What factors can negatively impact your credit score?

Back

Late payments, high credit utilization, and having too many hard inquiries can negatively impact your credit score.

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What is the difference between secured and unsecured debt?

Back

Secured debt is backed by collateral, while unsecured debt is not and is based solely on the borrower's creditworthiness.