| A | B |
|---|
| Getting a personal loan from a bank, using credit cards, taking out a mortgage on a house | factors that help determine FICO score |
| takes money directly out of your account in real time and does not let you spend more than you have unless you overdraft | debit card |
| a payment method that allows you to swipe now and pay later | credit card |
| type of debt, duration of debt, new debt | factors that affect credit score |
| can have serious consequences and prevent you from building wealth | borrowing money |
| w/o a FICO score you must have one of these two things to qualify for a mortgage loan | history of rental and utility payments, a down payment and employment history |
| intended to measure the risk of your not repaying debt | credit score |
| Experian, TransUnion, and Equifax | 3 credit bureaus |
| you do not need a credit card to | check into a hotel or rent a car |
| it is best to avoid these COMPLETELY | credit cards |
| states that ONLY person/organization with legitimate need may check a person's credit info | Fair Credit Reporting Act (FCRA) |
| group that is a huge target of credit card companies | teenagers |
| a good idea for a teenager who is ready to start building credit by applying for a credit card | asking parent to co-sign |
| A detailed report of an individual's credit history | Credit Report |
| Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated | Loan Term |
| Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan | Annual Percentage Rate (APR) |
| A yearly fee that's charged by the credit card company for the convenience of the credit card | Annual Fee |
| A card issued by a bank that allows users to finance a purchase | Credit Card |
| essentailly loanded money , providing the opportunity for business or individuals to obtain products or money in | credit |
| banks offer these cards sponsored by companies such as VISA or MasterCard | bank credit cards |
| Large department stores typically offer this type of card that can be exclusively used at their store | store credit card |
| this type of card is usually used for travel or business expenses | travel/entertainment card |
| This type of card is issued by banks and shows loyalty to certain schools, teams or other organizations | affinity card |
| this type of account is typically used to pay for large purchases such as a college education | installment accounts |
| this type of loan requires the borrower to put up collateral | secured loan |
| this type of loan requires the borrower to have excellent credit score but does not require collateral | unsecured loan |
