Understanding Credit Scores
What is a credit score?
A numerical representation of your creditworthiness, based on credit history.
What is the nickname of St. John's University athletic teams?
Red Storm
Is it better to pay off your credit card balance in full or carry a balance? Why?
Pay in full to avoid interest and help your credit score.
True or False: Your income affects your credit score.
False, income does not directly affect your credit score.
What is the best way to manage multiple credit cards?
Keep track of balances and due dates, and pay on time
What factor has the largest impact on your credit score?
Payment History
In what year was Saint John's University founded?
1870
What is the recommended credit utilization ratio?
No more than 30% of your credit limits
True or False: Does co-signing a loan affect your credit?
True, it can impact your score positively or negatively based on repayment
How can you responsibly increase your credit limit without harming your credit score?
Request an increase from your issuer without opening new accounts, and maintain low utilization.
What is the range of a FICO score?
300 to 850
Which famous basketball coach started his career at St. John's University in 1965?
Lou Carnesecca
How long does a late payment stay on your credit report?
7 years
True or False: All debt is bad for your credit score.
False. Some debt, like installment loans paid on time, can be good for your credit score
How do changes in interest rates affect existing credit card debt?
They can affect the cost of carrying a balance, especially on cards with variable interest rates
Name all three major credit bureaus in the U.S.
Experian, Equifax, or TransUnion.
St. John’s University is part of which athletic conference?
The Big East Conference
Name a good starting point to build credit
Secured credit cards or becoming an authorized user on a family member's card
True or False: Your credit score will drop if you don't use your credit card
False. Inactivity does not directly lower your score, but long-term inactivity may lead to the issuer closing the account, which can affect your score
True or False: Can you negotiate the terms of your credit card debt?
Yes, some lenders may offer hardship assistance
Explain the term "credit mix" and its importance in credit scoring.
Credit mix refers to the variety of credit accounts (credit cards, mortgages, auto loans, etc.) and is important because lenders want to see that you can handle different types of credit.
This St. John's University alumnus was the inventor of the first "Money Market Fund"?
Bruce R. Bent
Which credit scoring model includes rent, utility, and cell phone payments as factors in its calculation?
VantageScore
How does a hard credit check impact a person's credit score?
A single hard inquiry may lower a person's credit score by a few points. While this reduction is typically small, multiple hard inquiries can have a cumulative effect.
What's the difference between a hard and a soft credit inquiry, and how do they affect your credit score?
A soft inquiry does not affect your credit score and occurs when you check your credit or a lender pre-approves you for an offer. A hard inquiry can lower your score by a few points and happens when a lender checks your credit for a credit application.