Managing Credit Flashcard

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What is a credit report?

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A credit report is a detailed report of an individual's credit history, including personal information, credit accounts, payment history, and any bankruptcies or foreclosures.

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How often can you request a free copy of your credit report?

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Once a year per credit agency.

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What is credit utilization?

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Credit utilization is the ratio of your current credit card balances to your credit limits, expressed as a percentage. It is recommended to keep it under 30%.

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What is the recommended credit utilization percentage?

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30%.

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What happens if you miss a credit card payment?

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Missing a payment can negatively impact your credit score and the missed payment will remain on your credit report for 7 years.

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How long does a missed payment stay on your credit report?

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7 years.

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What is a repossession?

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Repossession is the act of taking back an item, such as a car or home, by the lender when the borrower fails to make payments.

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How long does a repossession stay on your credit report?

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7 years.

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

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False.

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What is a credit score?

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