Credit and Debt Review

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

• Credit Report

• Credit Score

• Credit Card

• Credit Check

The rate charged for borrowing money, usually expressed as a percent of the amount borrowed. The "extra" amount you pay on a debt.

• Interest rate

• Principal rate

• Term

• Liquidation rate

The amount of money you borrow from a lender, this does not include interest.

• Interest

• Principal

• Term

• Liquidation

The length of a loan agreement. Ex: Your home mortgage is a 30 year loan

• Interest

• Principal

• Term

• Liquidation

A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first

• Debt snowball method

• Debt avalanche method

• Chapter 7 Bankruptcy

• Chapter 13 Bankruptcy

A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first

• Debt snowball method

• Debt avalanche method

• Chapter 7 Bankruptcy

• Chapter 13 Bankruptcy

The maximum amount that may be borrowed on a credit card

• Credit Score

• Credit Utilization

• Outstanding Balance

• Credit Limit

Credit utilization is a measure that shows what percentage of your credit limit you are using. It is generally recommended to keep your credit utilization below...

• 20%

• 30%

• 40%

• 50%

Which is more important, to establish a high credit score, or to limit your debt as much as possible/be debt free?

• Establish a high credit score

• Limit your debt as much as possible/be debt free

This is what we call a loan to buy a house

• Auto loan

• Credit Limit

• Mortgage

• Cash Advance