FICO Credit Score
True of False:
Above 800 is considered a very good score.
What is...
True
EVERYONE CAN ANSWER
Legal age in US to obtain a credit card.
What is 18?
EVERYONE CAN ANSWER
If you buy a book for $20 using your credit card, have you really spent any money yet?
What is...
Well, not really. You still need to pay the credit card bill (with one of your bank accounts).
Definition of a Stock.
What is...
a share in the ownership of a company.
Definition of a lease.
what is...
a contract a landlord and tenant sign when a tenant wants to rent commercial or residential property
What you need a good FICO score for (Name 1).
What is...
Buying a house
Renting an apartment
Taking out loans
Definition of a Credit Card
What is...
A service that allows you to buy things upfront without actually spending your money. You pay back the credit card company later. When you are late in re-paying them, they charge a fee.
?
True or False:
A savings account can build your credit.
What is...
False
Definition of a Bond.
What is...
a loan to companies or to the government for a certain period of time. You earn interest, and at the end of the term, you get your original money back.
Definition of a mortgage.
what is...
A loan taken out to purchase a house.
what you FICO Credit Score is determined by. (Name 2)
What is:
Payment History
How much you owe
Credit History
Credit Types
Recently opened accounts
?
Definition of line of Credit.
What is... the amount of money you can spend using a credit card?
Definition of Credit Card Rewards.
What is...
an incentive or "reward" for use, typically involving cash back, merchandise discounts or frequent flyer points. Many different reward schemes have evolved to encourage particular uses, such as grocery or dining purchases or travel.
Definition of dividend.
What is...
Profits that are sometimes paid out to shareholders (stock holders).
EVERYONE CAN ANSWER
Three factors people may use to consider where to live.
What is...
population
housing price
unemployment
commute time
crime rate
EVERYONE CAN ANSWER
The FICO Score Range. (get within 50 of each number)
What is 300 - 850?
Definition of Payday Loans.
What is... usually a short-term, high cost loan, generally for $500 or less, that is typically due on your next payday.
It make trap borrowers in an endless cycle of repaying interest.
Definition of the Credit Reporting Bureaus.
What is...
a business that maintains historical credit information on individuals. They receive information from lenders and various other sources which they compile a credit report, which includes a credit score when issued.
(The 3 main ones are: Experian, Equifax, and Transunion)
Reason why a company would issue stock.
What is...
to raise money
(Unlike a loan, there’s no interest to pay; They also don’t have to pay back the principal.)
Definition of downpayment.
what is...
an initial payment made (let's say on a house), prior to receiving a loan.
A downpayment on a house may be as much as 20% (though programs enable first-time homeowners to pay less than that.)
The definition of the FICO Credit Score
What is a three digit number that helps lenders make informed credit risk decisions about customers. The score orders consumers by how likely they are to repay their credit obligations as agreed?
Definition of how you payback a credit card:
Pay it All
Pay the Minimum
What is...
1. Pay the full amount at anytime to cover the balance of your debt.
2. Pay a percentage of what you owe at the end of the month (and still own money next month, too).
Definition of a "Secured Credit Card"
what is...
a type of credit card for people with limited or damaged credit that requires the user to place a refundable security deposit, which the credit card company holds as collateral until the account is closed.
Definition of Absolute Priority.
What is...
If the company goes bankrupt (and turns every asset it has left into cash) there’s a repayment order.
1. Banks
2. Bondholders
3. Shareholder (people with stock)
Description of when it is better to buy vs. when it is better to rent.
Factors could include: