Credit
What is Credit Utilization Rate
How much you currently owe divided by your credit limit.
What is credit score
Credit score is a three-digit number designed to represent the likelihood you will pay your bills on time.
The higher the credit score, the lower the _________?
Interest
Why is it a good idea to build credit from a young age
You might miss out on securing a low-interest rate on a mortgage, personal loan, or credit card
How can a person improve there credit score?
Pay on time, keep your credit utilization rate low, limit applying for new accounts, and keep old accounts open.
The number range for a credit score is ___-___.
300-850
3 ways to build credit before your 21
co-sign, become and authorized user, and open a secured credit card
What are the 5 components that make up your credit score
payment history, amounts owed, length of credit history, new credit and credit mix
A person can check there credit score ____ time(s) a year
1
When is it a good idea to take on credit
When you turn 18 or as soon as you can
How does credit score determine a persons ability to borrow?
Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner
What are the consequences of having a thin file
Makes it difficult to borrow money or get a regular credit card
What percentage does each of the 5 components the make up a credit score have?
payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).
The credit bureaus are _________, ___________, and __________
Equifax, Experian, and TransUnion.