12/18/24 Flashcardziz Review for the Test on 12/19/24

Front

What does 'paycheck to paycheck' mean?

Back

An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings.

Front

What are the three main credit bureaus?

Back

Experian, TransUnion, Equifax.

Front

What should you do to improve your credit score?

Back

Pay your bills on time and reduce your outstanding debt.

Front

Why does a credit provider give you a credit limit?

Back

To prevent you from spending more money than you can pay back.

Front

Can parents add a child under 21 as an authorized user to an existing credit card?

Back

True.

Front

What is a credit score?

Back

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

Front

What factors can affect your credit score?

Back

Payment history, credit utilization, length of credit history, types of credit used, and new credit inquiries.

Front

What is the purpose of a budget?

Back

To plan and track income and expenses to manage finances effectively.

Front

What does it mean to be an authorized user on a credit card?

Back

An authorized user can use the credit card but is not responsible for paying the bill.

Front

What is outstanding debt?

Back

Money that is owed to creditors and has not yet been paid.