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Session #3 BONUS
Bonus Key Terms:
Co-Signer A person (parent, close family member or friend) who is responsible for paying back a loan if you fail to do so.
Credit Building Working to establish and maintain active credit accounts that are reported by creditor(s) to one or more of the major credit card bureaus.
Credit Limit The maximum dollar amount a borrower may charge on their credit account. Spending more than the credit limit may cause the lender to charge an overlimit fee and/or cancel account privileges.
Delinquent The status of an account with a past due amount. Paying late or missing payments causes the account to become delinquent.
FICO Score Fair Isaac Corporation; FICO score takes into account these 5 factors: payment history, current level of indebtedness, types of credit used, length of credit history and new credit accounts.
Guarantor The individual responsible for paying a bill.
Lender The person or company a borrower owes money to.
Principal The amount of debt, exclusive of interest, remaining on a loan.
