Bank Loan
Why do banks what to know the financial history of their loan customers?
Lenders need some way of understanding the financial risk of giving a customer a line of credit.
You are busy with finals and forgot to pay your credit card bill. You are charged $100 in late fees. This will likely lower your (fill in the blank).
A standardized measurement of the potential to repay a debt
Credit Score
A credit report contains many pieces of personal information about a customer. Name Two.
Previous address; employers; SSN; estimated income; payment history; loan information
What is another name for a baby goat?
I'm your bank. You want a loan. Why should I loan you money?
I am creditworthy; I pay my bills on time; I have little debt
You pay bills on time. Is this a smart move? Why?
Yes. It shows lenders that you can pay off your debts.
What is the name of the mammoth outside of Morrill Hall in Lincoln, NE?
Archie
Name one of the three nationwide credit reporting agencies
Equifax, Experian, TransUnion
Could this happen? Tyler is looking for a job and to buy his first home. The loan company denies him.
Yes. With no job, Tyler has no income to pay a mortgage. Plus, he has no home-loan history.
Why are some reasons that someone may need a loan from a bank?
Purchasing a car, house, or funding education
What popular childhood drink was invented in Nebraska?
Kool-aid
Paying a monthly fee to a landlord for use of property or land
Rent
What does a consumer reporting agency do?
it keeps records of consumers credit history
Could this happen? Bill and Sandy are buying their first home. Unfortunately, after checking their credit history, their bank turns them down for a loan because of nonpayment of past credit card bills.
Yes. Missing payments can lower your credit score and affect your ability to get a loan.
Name a character from Sesame Street!
Elmo, Big Bird, Cookie Monster, Grover, Count von Count, Oscar the Grouch, Bert, Ernie, Kermit the Frog, Rosita, Prairie Dawn, Murray Monster, Guy Smily, Grundgetta, Hoots the Owl
You decide to charge your new cell phone on a credit card and pay it off immediately. Does this help or hurt your credit?
Something that belongs to someone - no debt to be paid
Ownership
Name the school that Harry Potter attended.
Hogwarts
What does FCRA stand for?
Fair Credit Reporting Act - provide customers with a free copy of their credit report
Credit Score Range
300 - 850
Your available credit is $1,000 but you keep your debt to $200. How does this help you build a positive credit history?
When you spend less than your credit limit, it reflects positively on your spending habits.
Money that is borrowed that is expected to be paid back
Loan
Your credit score is 699. According to the FICO credit score system, is this a good or bad credit score?
Good
True or False? You suspect you are a victim of identity theft. Your friend tells you that getting a credit report costs big bucks, so you let it go.
FALSE