Credit score
What is the range of credit
300-850
Dropping a store credit card.
Hurt
What percentage of your credit card should you use?
30%
What is the difference in time to pay off a bill when it has high interest? When it's low interest?
It takes longer to pay off your bill if the interest is higher and it takes a shorter amount of time when the interest is lower.
What are some of the consequences of having a thin file?
Collateral, Capital, Capacity, Character
How often should you check your credit? How do you check your credit?
once a year and you can do this with each credit bureau.
Yes
What does a credit score determine about someone's interest?
The lower the credit, the higher the interest. The higher the credit, the lower the interest.
When is it a good to borrow a loan?
When you are about to make a big purchase.
What are the different types of credit?
Revolving Credit , Installment credit, Charge Cards, and service credit
Why is it important to build credit?
It is important build credit because you can get approved for loans and other financial benefits.
Sally May Anne has a credit card max of 200 and she buys something for 75 dollars. Did she go over the utilization credit?
Yes she did, 30% would be 60.
Do you want a card with a high interest rate or a low interest rate? Why or why not?
You want a card with a low interest rate because you will end up paying less.
How does someone's credit score determine if a person can borrow money?
Example: Bob the builder decided to build his business and took out a loan of $75000. His credit is 567.
If the credit score is low then you won't be approved for a loan because the bank can't trust you. If your credit score is high then you will most likely be approved for a loan and be approved for other benefits.
What are the 5 components that make up a credit?
Payment history, amount owed, Length of credit history, new credit, and types of credit used.
Why is it important to build credit from a young age? And how do you?
You have more financial benefits and low interest rates. You can get consigned to a bill and pay the bill on time so it can build.
If Oliver has a credit card limit of $2000 and he decides to buy a toaster on his credit card for $180, should he look for a lower price toaster?
No
When you take out a loan at the beginning of the payments, are you going to pay more for the principal or the interest?
Interest
What is amortization and how does it help compare loan plans?
Amortization is a chart that shows off all your interest and principal paid and it helps you compare plans because you can see how much you are paying in total.
What is the percentage of all the components in making a credit score?
Payment history 35%, Amounts owed 30%, Length of credit history 15%, New credit 10%, and Types of credit used 10%
Sam maxed out his credit card and gets another credit card, he maxed out that credit card as well and he can't pay his credit card bill on time. Hurting or building?
Hurting
Jeff has an utilization rate of 80% and he has a card of $7000. How much money is on his card?
5600
Jimmy has a credit score of 780 and is applying for a loan that is $5000. Tiffany is also applying for the same loan but has a credit score of 625. Who would most likely get the loan? If both of them get approved for the loan, is Tiffany going to pay more in interest than Jimmy?
Jimmy is most likely to get the loan. Yes, Tiffany would have to pay more in interest than Jimmy.
DO you think the avalanche or the snowball method is easier to pay off your debt?
Your opinion