Credit hypotheticals
When you go to buy a car your credit will affect what rate?
What is an Interest rate?
John pays his bills every month on time what is he establishing?
Is it positive payment history?
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
What is credit?
How do you know how much credit you have available?
What is a credit limit?
Credit that is automatically renewed as debts are paid off
What is revolving credit?
Sally believes that someone has access to her private information, her credit score is in jeopardy what can she do?
What is a credit freeze?
Karen uses all of her credit limit each month and only makes the minimal payment. What do lenders assume about her?
Karen is irresponsible with credit?
Karen doesn't understand credit?
Karen has budgeting issues?
the price you pay for borrowing money
What is interest?
How much of your available credit should you utilize on your credit cards?
Larger sums of money given at once to finance a purchase, usually paid back in equal portions?
What is an installment loan?
"You're entitled to one free ______ ________ a year from the credit bureaus.
What is a Credit Report?
When you purchase gas with your credit card, the issuers may sometimes guarantee you a percentage of cashback. What is this an example of?
What is free money?
An asset that a lender accepts as security for a loan
What is a collateral
Your monthly payments are calculated from your interest rate * what variable?
What is your monthly balance?
A loan sanctioned against an immovable asset, the asset is considered collateral until the loan is paid off.
What is a mortgage loan?
Credit is used for?
Determining interest rates?
Employment?
Rental applications?
Security clearances?
David has bad credit and goes to apply for a loan. Not only will his interest rate be high but his loan amount will be _____
What is limited?
interest rate over the course of a year
What is Annual Percentage Rate
Lenders typically want to see you stay under 30% but the best utilization rate is what?
Is it under 10%?
The kind of loan that some students need to attend college.
What is a student loan?
After paying your bills on time for months and maintaining a responsible utilization. You feel its appropriate to ask for a credit _____?
What is an increase?
Credit gives you the ability to make large purchases and pay it off with
What is payments?
3 Credit reporting agencies?
What is Transunion?
What is Equifax?
What is Experian?
How much money you owe vs how much credit you have available is considered your ____ to ____ ratio.
What is debt to credit ratio
Not personal credit, but can be used to finance business expenses.
What is business credit?