Credit and Financial Literacy Flashcard

Front

How can you avoid paying interest on a debt?

Back

Pay the entire balance in full and on time

Front

What percentage of your credit score is determined by payment history?

Back

35%

Front

What is a grace period?

Back

The time between the billing date and the payment due date when no interest is charged

Front

What is the recommended credit utilization ratio to maintain?

Back

Below 30%

Front

What are the types of credit used?

Back

Closed-end and open-end

Front

What does the length of credit history consider?

Back

Time since accounts opened and time since account activity

Front

What do credit inquiries show?

Back

How many times you have applied for credit recently

Front

What is a credit score?

Back

A number that indicates how creditworthy a borrower is.

Front

What is a credit bureau?

Back

A business that gathers, stores, and sells credit information to other businesses.

Front

Which of the following is NOT one of the 3 major credit bureaus? Credit Karma, TransUnion, Experian, Equifax

Back

Credit Karma