Credit and Debt Flashcard

Front

What is debt?

Back

Money that is owed because of borrowing

Front

What is the best way to manage credit and debt? Options: use rewards, spend now worry later, Make big purchases, set goals and budget

Back

set goals and budget

Front

What is the best credit score you can have?

Back

850

Front

What is true about a credit score?

Back

Predicts the likelihood that a debt will be repaid

Front

What are you likely to find in a credit report?

Back

Bill Payment History, Current Debt, Types of Credit Used

Front

Information that lenders gather about a borrower's willingness to repay a loan

Back

Character

Front

Information lenders gather about a borrower's ability to repay a loan

Back

Capacity

Front

protection for creditors in the event that they are not repaid

Back

Collateral

Front

Payment history is an example of

Back

Character

Front

Income is an example of

Back

Capacity