Credit Cards & Scores
Credit Scores
Credit Report
Credit & Loans
Random
100
What is something that could decrease your credit score?
-Applying for multiple credit cards in a short period of time
-making late payments
-missing payments
-not paying the minimum balance
100
Using less than ____% of the credit limit on your card can help increase your credit score
30%
100
What happens if I miss a payment?
-My credit score could decrease
-Penalty APR kicks in
100
True or False?
Debit Cards help build up my credit.
False
100
Do you want high credit or low credit?
High Credit
200
You find an error on your credit report that indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments.
What should you do FIRST?
Contact the credit card company to have them fix it
200
Do banks need to see your credit score to help you open up a savings account?
No
200
How long does information stay on your credit report?
7-10 years
200
The Equal Credit Opportunity Act allows lenders to deny you credit based on what?
-Your credit score
-payment history
200
What is a secured credit card?
A type of credit card that requires cardholders to make a security deposit equal to the credit limit on their account.
300
If you are at a young age, how could you build up credit without opening up a credit card by yourself?
Ask your parents to cosign a credit card
or
Ask them to add you as an authorized user on their credit card.
300
What is the best way to build up your credit score?
Make on-time payments
300
Why is it best to begin establishing credit when you're young?
You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card.
300
How can you prevent identity theft?
-Be careful with your credit and bank account numbers
-create strong passwords
-beware of phishing emails.
400
If someone calls you and says that your credit card has been stolen and asks that you type in your 16 digit card number, what should you do?
Hang up and call her credit card company using the 1-800 number on the back of her card to inquire about the issue or report the attempted phone fraud.
400
What are the two most important factors when calculating your credit score?
-Payment history
-amounts owed
400
What shows up on their credit report?
- Payment history of your car loan
- Credit card payment history
- Student loan activity
400
Why do people use payday loans even though they know they have higher interest rates?
Consumers need quick access to money that is not provided by other financial institutions.
400
Provide two possible consequences for missing a credit card or loan payment.
- Your credit score is lowered
- Interest is charged on the amount owed
- Company may charge a fee on top of money/interest owed
- Interest rate may go up as a result of missing a payment
500
How can your credit score impact your financial situation?
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be.
500
Jessica and James are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a five year period. Jessica has a credit score of 700 and James has a score of 580. Which of the following statements is TRUE?
Over the five year period, they will pay the same amount for the car loan.
James monthly payment on the auto loan will be about $100 more than Jessica payment.
Jessica monthly payment on the loan will be about $100 more than James payment.
Lenders are not allowed to charge people different interest rates based on their credit scores.
James monthly payment on the auto loan will be about $100 more than Jessica payment.
500
What companies track all of your credit information?
List all three
Equifax, Experian and TransUnion
500
What is the Debt Snowball method for paying off debt?
Make the monthly minimum payments on all your debts and put any extra cash toward the debt with the lowest balance.
500
Explain the relationship between your credit report and your credit score.
Your credit report shows your credit history - your relationship with credit in the past - such as loan payments over time, late payments, and bankruptcies.
Using the data in this report, your credit score is determined to gauge how likely you are to pay back a future loan.