General Credit Qs
Name 3 things you need credit for.
Provide 3 examples of installment loans.
1) Student Loans, 2) Personal Loans, 3) Buy Now, Pay Later, 4) Auto Loans, 5) Payday Loans, 6) Mortgages
You should generally keep credit utilization below ____ and aim to pay it off ____.
30% ; monthly
Who is a campus partner that you can talk to about your credit?
Financial Advising
Name 3 things considered in your credit score calculation.
1) Payment History, 2) Amount Owed, 3) New Credit, 4) Length of credit history, 5) Credit mix
What is the difference between secured and unsecured loans?
Secure loans require collateral, such as a home or car; the lender can seize it if you don’t repay.
Unsecured loans don't require collateral; approval is based on credit, income, and debt.
Name three things you should keep in mind when looking for a credit card.
1. Schumer Box (APR, grace period, annual fee, penalty fee)
2. Rewards and Perks
3. Credit Limit
4. Accessibility
Name two things you can do if you find yourself with a credit score you don’t like?
1. Build a better budget.
2. Be open --> Deferment, forbearance, payment plans, refinance
What is a hard inquiry? What are some effects?
A hard inquiry is when a lender looks at your credit report. It temporarily lowers your credit score. Multiple hard pulls can significantly decrease your score.
What is a closed end loan?
Closed-end loans provide the full loan amount upfront.
Why is it potentially harmful to apply to more than one card within a 6 period time frame?
When you apply to a credit card, the issuer will run a hard inquiry on 1+ credit reports. Many inquiries over a short period of time can hurt your credit score. Space out credit applications by 6 months.
Name some terms you should read carefully before making a credit decision.
interest rates, repayment options, grace periods, annual fees, transfer fees, cash advance fees . . .