Financial Literacy Terms Review

A document containing an individual's financial information focusing on payment of their credit obligations over time

• Credit Report

• Credit Utilization Rate

• Credit Score

• Credit card

Cost of borrowing money on an annual basis;takes into account the interest rate and other related fees on a credit card

• Minimum payment

• Annual Percentage Rate (APR)

• Penalty APR

• Credit utilization rate

A measurement of your outstanding debt divided by your total available credit; a

general rule of thumb is to keep this under 30%

• Credit Score

• Credit Utilization Rate

• Credit limit/line of credit

• Credit Report

An inquiry into your credit history as part of a background check. This does not affect your credit score.

• Payment History

• Soft Inquiry

• Credit Report

• Hard Inquiry

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

• Credit Report

• Debit card

• Credit Score

• Credit card

An inquiry into your credit history, typically in advance of applying for a loan. Can

negatively affect your credit for 12 months and remain on your credit history for two years.

• Credit Score

• Payment History

• Soft Inquiry

• Hard Inquiry

Company that is the most widely used consumer credit score that financial institutions rely on to decide whether to lend money or issue credit.

• Bankruptcy

• debit card

• Credit Score

• FICO

A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with (compound) interest

• Credit card

• Credit Score

• Debit card

• Credit Report

A three-digit number (ranging from 300-850)based on an individual's credit history

detailed in a credit report

• Bankruptcy

• Annual Percentage Rate (APR)

• Credit Score

• Credit Card

The maximum amount you charge on a credit card

• Credit limit/line of credit

• Credit Score

• Credit Report

• Credit Utilization Rate