Unit 6 Review

How much you owe each creditor individually and in total; 30% of your credit score is based on this.

• Amounts Owed

• New Credit

• Payment History

• Types of Credit

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

• Credit Score

• Credit Card

• Authorized User

• Collections

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

• Credit Bureau

• Bankruptcy

• Collections

• Default

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

• Debt Settlement

• Bankruptcy

• Default

• Collections

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

• Credit

• Credit Card

• Credit Report

• Credit Score

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

• Credit

• Credit Bureau

• Credit Report

• Credit Score

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

• Amounts Owed

• Credit History

• Payment History

• New Credit

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

• Credit

• Credit Report

• Credit Score

• Credit Bureau

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

• Credit

• Credit Report

• Credit Score

• Credit History

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

• Credit Utilization Rate

• Credit Score

• Credit Report

• Debt Settlement