Credit Score
What is installment credit?
Installment credit has fixed payments over a set period (e.g., car loans, mortgages, student loans)
What is the credit bureau?
Collect and maintain information about your credit history, which lenders use to assess your creditworthiness.
There are several credit reporting agencies but most are familiar with the Big Three:
What should you request from all three bureaus when considering buying a home?
Credit report
Is a 700 a good score or exceptional score?
Do you want high credit or low credit?
High Credit
What year was the Mercantile Agency founded?
1841
Do banks need to see your credit score to help you open up a savings account?
No
What percentage does your payment history have on your overall credit score?
35%
lower
Name the ways to improve your credit score?
- make payments on time
- get a credit card
- improve your credit utilization ratio
What is revolving credit?
Revolving credit allows borrowing up to a limit, with variable payments based on usage (e.g., credit cards, lines of credit).
Who is Josie Johanson?
Regional Mortgage Credit Specialist at LENNAR Inc.
What is your interest rate based off of?
FICO score
You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card.
What is one strategy to recover from debt?
What is a credit report?
A credit report is a master document with information about your credit activity including:
What is the minimum score to qualify for the best mortgage options?
74 and above
What fraction of Americans have an error on their credit report?
1/5
What countries have a similar scoring system to the US?
UK and Canada
An interest rate is the cost of borrowing money, expressed as a percentage of the principal amount, or the rate of return on an investment, typically expressed as an annual percentage.