Credit score basics
Credit scores range between what two numbers?
300-850
In what year was the first commonly used FICO credit score put into place?
1989
What is the name of the factor that looks at when you pay back?
Credit History
What does credit utilization measure?
The amount of available credit being used
True or false: high credit scores signify someone is likely to pay back debts
False, it's the opposite.
What is the name of the three-digit number that represents the risk of a borrower?
Credit Score
Who founded the company that created the FICO score?
Bill Fair and Earl Isaac
Which component measures the total available credit you are using?
Credit Utilization
If you owe 200 dollars on a 1000-dollar limit, what would your rate be?
20%
True or False: At all times, people can only have one credit score.
False, some companies will report different numbers and it will vary slightly.
Name one group other than lenders that might check your credit score.
Employers, landlords, ect.
Before now, what did lenders rely on to evaluate credit?
Credit reports without standard scores
What component considers the time with open credit accounts?
What is the recommended rate?
30%
True or False: High credit utilization typically signifies a good credit score.
False, this assumes more risk.
What type of document gives the info used to calculate a credit score?
Credit Report
Who are the three major credit bureaus used to calculate most credit scores?
Experian, Equifax, and TransUnion
Which credit score component looks at your most recent credit applications?
Credit utilization is part of what larger category?
Amounts owed
True or false: Credit scores can change your ability to get a loan.
True
Why might your credit score change from place to place?
Bureaus report your score at different times and cause differences.
When did the concept of credit reports begin?
Early 19th century
What component evaluates having your combination of various types of credit accounts?
Credit Mix
A high utilization ratio signals to lenders about your risk.
You are higher risk
True or false: Payment history is the most crucial component of your credit score.
True