Chance
Go out to eat every week or save the money to pay more on your loan.
Go out to eat: Your debt gets higher and higher, score decreases by 25
Save money: Score increases by 25, you pay of all you loans.
You get a car loan and make the minimum payment each month or more than the minimum?
Minimum: You barely keep up with your debt, your score decreases by 25.
More: You consistently pay more, and pay off your loan early. Your score increases by 25.
Would you rather have a home loan at a fixed interest rate or a variable interest rates.
If you choose the fixed interest you lose 50 credit points because you were not able to pay off one of your house payments on time. If you choose the variable interest rate you loose 100 points of credit score because your bank increased the interest rate to 23%.
You are given an opportunity to work at a new job with higher salary, but it is not as fun. Will you take it or not?
Yes: You manage to pay off all your loans and debt, your credit score increases by 75!
No: Your credit score decreases by 75, you have failed to pay off all your debt.
4 years
Ok score, increase by 25
You must create a presentation and sell a product to get a major promotion. Do you do it or are you too lazy and decide to go home and watch TV.
Make the presentation: Yayyayay! You manage to sell your product. You salary increases tremendously and you pay back your loans. Congratulations your credit score increase by 75!
Watch TV: You boss gets mad and fires you, you fail to make some payments when your looking for a new job and you score decreases by 75.
Your car breaks down and you have to pay for the repairs. Do you take a loan for the repairs or use your emergency fund?
Loan: your credit score decreases by 50
Emergency fund: You loose money but your score doesn't change.
This is a deposit a homebuyer makes when entering into a purchase agreement for a home, generally as a sign of good-faith intent.
Earnest Money
Someone in your family dies.
You inherit a bunch of money! Your score increases by 50!
6 years
Average score, Increase by 50
Would you like to become and authorized user?
Congratulations! You got added to you family members plan as an authorized user. Your credit score increases by 100!
Do you want car insurance that charges $250 a month for full coverage, or $150 for partial coverage?
You get into a major car accident.
$250: Nothing happens, insurance pays for everything.
$150: You must pay a lot of money so you take a loan. You credit score decreases
This term refers to the holding of funds or documents by a third party prior to closing.
An Escrow
You get fired!!! What do you do? Find a another job, or live unemployed in your mothers basement?
Find a job: Your credit score doesn't change.
Live unemployed: You debt piles up and your credit score drops by 100.
8 years
Good score, increase by 75
Do you make preparations to prepare your house, or not worry much about it and go on with your daily life?
Preparations: Yay! you survived no damage you have been award 100.
Not worry: Your house is heavily damaged. You must take loans to pay for the damage, your credit score drops by 100.
You are planning on buying a second car. Will you wait to finish paying for the loan for your first car before you buy the second, or will you juggle both loans at the same time?
Get two loans at the same time: credit score decreases by 100
If you pay off the loan immediately you still lose 50 credit score points. But if you pay off the loan as planned then you will be able to slowly raise your credit score again. Plus 100 credit score points.
You get caught stealing and are sentenced to jail time. Do you stop paying your loans or make arrangements with you parents and agree to pay them back later?
Make arrangements with parents: Your credit score increases by 50 all your payments were made on times.
Stop paying loans: Credit score drops by 50.
10 year
Increase by 100
You win the state lottery! Do you pay back all your loans, or go to Hawaii for vacation?
Pay back loan: Your credit score increases by 250!
Hawaii: You miss your loan payments, and you get bit by a shark so now you have to pay for medical bills. Your credit score drops by 250.
You are fined $100 for missing your monthly payment. If you miss another one your interest rates will increase by 5%. What will you do?
Cut down on payment for wants and pay extra on the loan: score increases by 200
Miss another payment: score decreases by 200
You are going to be late for your house mortgage payment do you pay it off or do you wait and spend your money in the new iPhone?
If you are late for your mortgage payment then your credit score will fall by 35% but if you pay it off your credit score only falls 25 points.
You give it to them: They steal all your money you credit score drops by 600.
You report the message to the bank: Yay you money is safe and you get a 100 increase as a reward.
16 years
Excellent score! Increase by 200