True or False
True or False: Making your payments on time negatively impacts your credit score.
FALSE! Making your payments on time POSITIVELY impacts your credit score.
John is 18 and has no credit history. John wants to buy a new farm truck in the future. What should John do to start building his credit?
Apply for a credit card, and make monthly payments towards the balance
True or False: A credit score of 800 or above is an excellent credit score
TRUE!
True or False: You should have at least 6 lenders pre-approve you before you decide who to go with.
False! It is okay to window shop, but credit inquiries tend to impact your credit score. Keep serious inquiries to a minimum.
Keep track of when monthly bills & payments are due in order to make payments on time.
DO
True or False: You should always keep your balance as close to the limit as possible.
FALSE! It is ideal to keep your balance under 30%-40% of your credit limit.
What is a credit score?
A number assigned to a person that indicates the capacity to repay a loan.
Maximize your credit limit as much as you can.
DON'T
True or False: Most lenders report late fees in 30/60/90-day increments.
TRUE!
What does "APR" stand for?
Annual Percentage Rate
Pay monthly balance in full.
DO
What are the 5 C's of credit?
Character, Capacity, Capital, Collateral, Conditions