Basics
Is 438 a good credit score?
No, the ideal range would be 700-800, but average is 620-670.
What is the best way to learn how you can prevent yourself from lowering your credit score?
A. Look it up online
B. Talk to a credit counselor
C. Asking a bank teller
B. Talk to a credit counselor
Which of the following is one way you can fix your credit score...
A. Talking to a credit counselor
B. Getting in contact with a credit bureau
C. Only time will repair your score
C. Only time will repair your credit score
What is a FICO score?
The most commonly used credit score.
Does maxing out on your credit card have a positive or negative impact on your credit?
Negative
What is a credit score?
A three digit number that helps lenders determine whether you are likely to payback loans and make payments on time.
Does debt settlement have negative impact your credit score?
Yes
How many things are taken into account when determining a credit score?
5
What is a thin file?
A term used to describe someone with little to no credit.
True or False:
You are more likely to get accepted for a loan if you have a longer credit history than someone with a shorter history.
True.
What is the possible range for a credit score?
350-800
If your credit score is higher, do you lose more points than someone with a lower score (considering negative impacts)?
Yes
What percentage of "length of credit history" is taken into account when it comes to a credit score?
15%
The interest rate a credit card user will be charged on the unpaid portion of their balance is called...
Annual percentage rate(APR)
Who creates a credit report?
A. Lender
B. Credit Report Agencies (CRAs)
C. Consumer/Borrower
B. Credit Report Agencies(CRAs)
What is considered good credit?
620-699
How many points will you lose if you've missed a credit card payment if your credit score is around 650?
60-80 points
Does your "amount owed" have the biggest impact on your credit score?
No, "payment history" has the most impact on your credit score.
A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay is called....
Bankruptcy
All of the following information is included on a credit report except:
A. Name
B. Address
C. Mom's name
D. Date of Birth
C. Mom's name.
What are the three credit agencies?
Equifax, Experian, and TransUnion.
A. Maxing out a credit card
B. Foreclosure
C. Bankruptcy
C. Bankruptcy
What are the 5 factors that are taken into account when determining a credit score?
Payment history, amount owed, length of credit history, new credit, and types of credit.
Long-term failure to repay a loan according to the term agreed to, which has a substantial negative impact on the borrower's credit score is called....
Default
True or False: Open-end credit is when a borrower repays a specified number of equal payments.
False. This is Closed-end credit.