Managing Credit Flashcard

Front

What should you do if you find an error on your credit report?

Back

Contact the credit card company first.

Front

True/False: Most Americans have large amounts of money in their savings accounts and hardly any debt.

Back

False

Front

What is one effective strategy for getting out of debt?

Back

Create a budget and determine what you can pay every month.

Front

What is the snowball method in debt repayment?

Back

A strategy where you pay off your smallest debts first to build momentum.

Front

What is a good credit utilization score?

Back

A credit utilization score below 30% is considered good.

Front

Which two credit score categories are most important?

Back

Amounts owed and payment history.

Front

What is a credit report?

Back

A detailed report of an individual's credit history.

Front

What does a credit score represent?

Back

A numerical representation of a person's creditworthiness.

Front

What is the impact of late payments on your credit score?

Back

Late payments can significantly lower your credit score.

Front

What is the purpose of a budget?

Back

To track income and expenses to manage finances effectively.