Credit Score
What are the 2 most important factors in calculating your credit score?
Payment history and amounts owed
Which government run website allows you to download your credit report for free on an annual basis?
What is the worst thing to do if you fall behind on your bills?
Stop making payments on your bills and wait until you have enough money to pay.
What is the best way to boost your credit score?
Do not use more than 30% of the credit limit on your credit card and paying it off every month.
Who tracks all of your credit information?
Experian, Equifax and Transunion
Snowball: Start by paying off the smallest loans first.
High Rate: Start by paying off the highest interest rate loan
What is the best way to improve your low credit score?
Make on time payments
What is the relationship between a credit score and credit report?
The information in your credit report is used to calculate your credit score.
What are the potential consequences of not paying your debts
You can be turned down for new loans, foreclosure, repossession of items
How can your credit score impact your financial situation when it comes to borrowing money?
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
What information should appear on a credit report?
Payment history of loans and credit cards, inquiries for credit,bankruptcies
What kind of information would a lender checking a credit score for an auto loan be interested in?
If there was a previous auto loan and if it was paid on time each month
What kinds of things can have a negative impact on your credit score?
Applying for multiple credit cards in a short period of time, making late payments, using too much of your available credit
According to the Equal Credit Opportunity Act, what factors can a lender use to determine if you are eligible for a loan and what the interest rate will be?
Credit score, debt to income ration, work history
Dora has a home currently worth $150,000, for which she still owes $75,000 on her mortgage. She has $8,000 in student loan debt and $10,000 in credit card debt. She likes to keep a large emergency fund, so she has $15,000 in a savings account. Her annual salary this year will be $64,000. What is Dora’s net worth?
$72,000