Credit Score
How many numbers are usually in a credit score?
3 digits
What is a credit report?
Information from your creditors showing the extent of your credit and payment history
Should you avoid credit cards?
No
Should you make payments on time?
Yes
What do credit reporting agencies do?
Give you your credit score
Why is credit score important?
It is a picture of you as a credit risk to the lender at the time of application
How is a credit report used?
It is used by lenders to determine if they will loan you money, and at what rate
Is it good to max out your credit card?
Is it okay to open lots of new accounts?
No, limiting the amount of accounts you open can help raise and improve your credit score
What do credit reporting agencies do to make your credit score?
They compile, sort and sell your credit information
What is credit score?
A number that represents a person's credit behavior
Personal information, current and past credit accounts, and public records
Asking for an ________ of credit limit hurts your score
Increase
How should credit card balances be paid?
Credit Card balances should be paid strategically and in full to help raise credit score
What are the three credit reporting agencies?
Equifax, Experian, and TransUnion
What kinds of scores can you obtain?
Very poor, Poor, Fair, Good, or Excellent
How long can negative information stay on a credit report?
Up to 7 years
How many bills are you allowed to skip for it not to affect your credit score?
None
How does checking credit reports help?
Checking credit reports can help you spot any errors that could be bringing your credit score down
How do credit scores influence future purchases?
With a good score you get better benefits and higher loan choices
What are 3 benefits listed of having good credit score?
You'll get the best insurance rates, it will be cheaper to borrow money, and you’ll develop a good reputation and look better to potential employers
Which piece of information stays on your report for 10 years?
Bankruptcies
How many days is the grace period on a credit card?
30 days
How effective is a credit-builder loan?
Credit-builder loan are very effective when it comes to raising credit score. This is very helpful for people that have a very low credit score and need to raise it
What is in a credit report?
Your name, address, birth date, SSN, and phone numbers