Personal Finance 118 - Credit & Credit Scores

borrow

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Terms in this set (9)

receive and use someone else's money, with the intention of repaying it with interest (usually)

maximum amount of credit a lender is willing to provide to a borrower.

credit utilization rate

percentage of your credit limit that you have borrowed

Image: credit utilization rate

creditworthiness (credit risk)

an assessment of how likely someone is to default on a loan

delinquent loan

a loan not being paid on time

private firm that maintains consumer credit history and sells credit information to authorized users (creditors) [Experian, Equifax, TransUnion]

Image: credit bureau

a report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances

Image: credit report

numerical rating of your credit-worthiness (how likely you are to pay off your debts).

credit score from 300-850 that rates how likely a person is to fall 90 days behind in a payment.

Image: FICO score