Credit Score
What is a credit score?
Shows how likely you are to repay borrowed money.
What factors affect your credit score?
Payment History
Amount Owed
Length of Credit
Types of Credit
New Credit
What does APR mean?
Annual Percentage Rate
What is an inquiry on your credit report?
An inquiry is a record that shows someone checked your credit report.
What is the name of the budgeting strategy we learned in class and used on the Dream Home on a Budget Project?
50/30/20
What is the typical range of a credit score?
300-850
What happens if you don't pay your credit card balance in full?
You pay interest
What is the difference between a deductible and a premium?
Deductible - what you have to pay before insurance covers it
Premium- what you pay each month
What is it important to check your credit report?
Fix errors
Identify fraud
What factors do people consider when buying a home?
Location
Traffic patterns
Close to parkways
Number of bathrooms and bedroom
Pool
Why might two people with the same income have different credit scores?
Two people with the same income can have different credit scores because a credit score is based on how you use credit, not how much money you make.
What many points can your credit score drop if you miss a credit card payment?
131 points
How does making a down payment affect your monthly payment?
Reduce monthly payment
How do you know if you are behind on a credit card, based on your credit report?
It will show a number instead of an ok.
How much money should you put down on a house?
20% of the price of the home
What happens to your credit score when you close an account?
Shorten credit history and lower credit score.
What do you call, what you must pay each month, without receiving a penalty fee on your credit card?
Minimum Payment
Why do cars lose value over time?
Depreciation, age, mileage, market demand
What is the difference between a credit report and a credit score?
Credit Score- one number
Credit Report- detailed report
What happens if you don't have the 20% for a downpayment?
You pay PMI- private mortgage insurance
What are 2 types of credit you can have?
Installment Credit
Revolving Credit
What is the difference between a balance transfer and cash advance?
Balance Transfer-Move debt from one card to other for a lower interest rate
Cash advance- Take cash from ATM, comes with high interest rate
Covers damage to car from no accident events- theft, weather related things
What are the 3 major credit bureaus?
TransUnion
Equifax
Experian
What is the next question?
Free- 500 pts