CREDIT
BASICS
BASICS
What is a credit score?
A three-digit number, generally between 300 and 850, that represents your creditworthiness
What is a credit limit?
the maximum amount of money a lender allows you to borrow on a credit card or line of credit.
What is the primary monitoring service agents should promote in standard scripts?
IDIQ
What does APR stand for?
Annual Percentage Rate
What planet is known as the Red Planet?
Mars
What is the highest credit score possible?
850
What is utilization rate?
the percentage of your available credit you're currently using. It's calculated by dividing your total outstanding credit card balances by your total credit limits, then multiplying by 100. This percentage represents how much of your available credit you're borrowing at any given time.
Under what TWO conditions can SmartCredit be offered? (hint: Id iq errors is not one of them)
What is a charge-off?
A "charge-off" occurs when a creditor decides that a debt is unlikely to be collected and writes it off as a loss.
What fruit keeps the doctor away if eaten daily (according to the saying)?
Apples
Name one credit bureau
Transunion
Experian
Equifax
True or False: It’s okay to max out your credit card if you pay it off quickly.
Maxing out a credit card can harm your credit score, increase your minimum payment, and lead to over-the-limit fees.
What is SmartCredit’s monthly fee after trial?
$27.95/month
What does “derogatory mark” mean?
A "derogatory mark" on a credit report refers to negative information that indicates you haven't fulfilled your financial obligations, like late payments, defaults, or bankruptcies.
What is the largest bone in the human body?
Femur
What is a credit report used for?
to assess an individual's creditworthiness and risk for lending institutions, insurance companies, employers, and landlords.
What is a secured credit card?
A secured credit card is a type of credit card that requires a security deposit, which serves as collateral for the card's credit line.
What should agents educate clients about regarding monitoring services? (in regards to our service/the process)
Keeping the service active at all times
Define “debt-to-income ratio.”
The Debt-to-Income (DTI) ratio is a financial metric that compares a person's monthly debt payments to their gross monthly income, expressed as a percentage.
How many colors are in a rainbow?
Seven
What the difference between a soft inquiry and a hard inquiry?
A hard credit search involves a review of your credit record, which may impact your credit score and eligibility. A soft credit check just provides a view of your credit eligibility, which won't impact your credit score or ability to secure credit.
What happens if you only make the minimum payment on your credit card?
will lead to increased debt due to compounding interest, a longer repayment period, and potentially a higher credit utilization ratio, which can negatively affect your credit score.
What are the top 3 sites we offer in order?
ID IQ, SMART CREDIT, MY SCORE IQ
What’s the difference between revolving credit and installment credit?
DECEMBER 12 :D