What is credit?
How old do you have to be to obtain credit?
What is 18?
What is the earning power and employment history part of the 5 C's?
What is Capacity?
Name one type of information not on your credit report
• Marital Status
•Education Level
•Religion & Nationality
•Race
•Medical Information
•Criminal Background
•Bank Account Balances that are unrelated to loans
•Credit Score
•Buying Habits
•Income Level
What is a credit where you pay after you receive a service?
What is Service Credit?
What is the maximum amount of money available on your account?
What is credit limit?
What is one advantage to have credit?
- Getting to use goods/services as you pay for them
- Line of credit
- Emergency use
- Builds Credit
Which of the 5 C's shows your financial history?
What is Character?
Name two people/organizations that can check your credit history.
•You
•Lenders - auto dealers, mortgage lenders, credit card companies
•Landlords
•Insurers
•Employers
Name a benefit of Store Credit Card (Retail)?
What is special discounts/sales?
What is Annual Fee?
What is the time given to pay your balance without gaining interest?
What is grace period?
What is the value of property you possess?
What is capital?
List two factors used in determining your FICO Score
- Payment History
- New Credit
- Types of Credit
- How much debt
- Length of credit history
What source of credit usually offers lowest APR?
What are credit unions?
What is the cost of credit (percentage)?
What is APR?
What is one disadvantage of credit?
- The reduction of future income
- Expensive
- Temptation
- Risk of consequences
What is the terms of the loan?
What are conditions?
Name one of the credit reporting agencies
- Equifax
- Experian
- TransUnion
Give one example of Installment credit
- Education Loan
- Mortgages
Who reports account history to the Credit Reporting Agencies?
Lenders
What does credit truly show?
Trustworthiness
What is an asset that can be taken if you don't make payments?
What is Collateral?
If you close an account in good standing how long will it impact your credit score for ?
10 years
What type of credit is a Credit Card?
What is Open-ended?
Name 3 types of information provided to lenders when applying for credit
- Name
- Any previous names
- Telephone Number
- Social Security Number
- Date of Birth
- Employment History