Credit Study guide Flashcards
The fee a credit card company charges for the use of their credit card
Annual Fee
The maximum amount of money a lender is willing to loan an applicant
Credit Limit
The charge for setting up a loan (often associated with home loans)
Origination fees
The total cost of using credit, including interest and fees
finance charge
The length of time you have to pay the loan
the longer the loan, the lower the monthly payment
Loan term
The length of time that the lender charges no interest in money borrowed when paying off your balance in full each month
Grace period
The cost of the loan reach year expressed as a percentage
All lenders are required by la to calculate the APR the same way
Annual Percentage Rate (APR)
Lower interest rate offered by card companies, usually for a short period of time, to entice you to sign up for credit with them.
Eventually the rate expires and the new increased rate takes effect
Introductory Rate
APR is a ______ rate
annual/yearly
List the major credit bureaus
- Trans union
- Equifax
- Experian
What things cannot be included on your credit score
- race
- color
- sex
-marital status
New credit makes up what percent of your credit score
10%
Amounts owed makes up what percent of your credit score
30%
Payment history makes up what percent of your credit score
35%
Length of credit history makes up what percent of your credit score?
15%
