Credit report
A record of how you've borrowed and paid back money. You can check yours for free at AnnualCreditReport.com.
Practice it
Learn the bigger idea
- Credit cards and credit scores, explainedThe three-digit number that follows you for years, and how a credit card can help it or wreck it.
- Scams and identity theft, explainedThe fake jobs, prize texts and "your account is locked" messages aimed at teens, and how to spot them.
Related words
- Credit score
- A number, usually from 300 to 850, that tells lenders how likely you are to pay back what you borrow. Paying bills on time is the biggest factor.
- Credit utilization
- How much of your available credit you're using. Using a small share of your credit limit is better for your score.
- Credit card
- A card that lets you borrow money to pay for things. If you don't pay the full bill each month, you're charged interest on what's left.
- APR
- Annual percentage rate: the yearly cost of borrowing money, shown as a percent. It includes interest and some fees. Many credit cards charge more than 20%.
- Minimum payment
- The smallest amount you can pay on a credit card bill without a late fee. Paying only the minimum can keep you in debt for years.
- Loan term
- How long you have to pay back a loan, like 60 months for a car loan.
Test yourself in Word sprint · All money words
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