A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill.

A legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment.

An attempted recovery of a past-due credit obligation or debt by a collection department or agency.

An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest.

A consumer-reporting company that collects and sells information about how individual people manage their credit (e.g. Equifax).

A record of a person's use of credit over time; 15% of your credit score is based on the length.

A document with information about a person's credit activity and history.

What is the name given to the numerical rating that you receive based on your credit habits?

A measurement of your outstanding debt divided by your total available credit; a general rule of thumb is to keep this under 30%

An agreement made between a creditor and a consumer in which the total debt balance owed is reduced and/or fees are waived, and the reduced debt amount is paid in a lump sum instead of revolving monthly.

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

Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score.

The most commonly used credit score.

An inquiry into your credit history, typically in advance of applying for a loan. This can negatively affect your credit for 12 months and remain on your credit history for two years.

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

The number of recently opened credit accounts and all new credit inquiries; 10% of your credit score is based on this.

A history of the payments you have made on all credit you have obtained; 35% of your credit score is based on this.

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

Also known as your credit mix. This can include a mix of accounts from credit cards, retail accounts, installment loans, finance company and mortgage loans. 10% of your credit score is based on this.

What are the two most important factors in calculating your credit score?

Ripp is carrying a balance on his credit card of $700. The credit limit on the card is $1,900. What is his utilization rate?

Which of the following would appear on a credit report?

What is the single best way for you to improve your credit score?

Each of the following is likely to check your credit score EXCEPT?

You have a credit card and want to know the best way to use it to boost your credit score. Which step will have the greatest impact?

I forget to pay my credit card bill one month. How long will that payment information show up on my credit report?

All of the following have a positive impact on your credit score EXCEPT....

Ripp has a home currently worth $270,000, for which he still owes $175,000 on his mortgage. He has $9,580 in student loan debt and $7,000 in credit card debt. He likes to keep a large emergency fund, so he has $18,000 in a savings account. His annual salary this year will be $72,000. What is Ripp's net worth?  

Why do potential lenders frequently request to see your credit report before allowing you to borrow money?