Credit Flashcard

Front

What is credit history?

Back

A record of a borrower's repayment of debts, including credit cards, loans, and other financial obligations.

Front

What can result from having no credit history?

Back

No access to credit.

Front

What is overdraft protection on a credit card?

Back

A feature that charges you a fee if you exceed your credit limit.

Front

How often can you access your credit report for free?

Back

Once every 12 months.

Front

What is 'shoulder surfing'?

Back

Listening or viewing personal information in public places.

Front

Which of the following is an example of a risky credit arrangement?

Back

Tax refund loans.

Front

What is a credit limit?

Back

The maximum amount of credit that a lender extends to a borrower.

Front

What is the purpose of a credit score?

Back

To assess a borrower's creditworthiness and likelihood of repaying debts.

Front

What is a secured credit card?

Back

A credit card backed by a cash deposit from the cardholder, which serves as collateral.

Front

What does it mean to default on a loan?

Back

To fail to repay a loan according to the agreed terms.