Components
Does making late payments increase or decrease your credit score?
Decrease
If you had 3 credit cards, would that increase or decrease your credit score?
Decrease
What percent of your PAYMENT HISTORY makes up your credit score?
35%
When it comes to credit scores, why is having a thin file NOT an asset?
You don’t have enough payment history, credit mix or a strong credit score
What percent of Americans DO NOT know their credit score?
About 63%
What is one component of a credit score?
Amounts Owed, Payment history, Types of credit, New credit, Length of credit history
Would having NO student loans increase or decrease your credit score?
Increase
What percent of your CREDIT MIX makes up your credit score?
10%
Should you make smaller payments first, or larger payments first?
Smaller
How often should you check your credit score?
3 times a year or more
Is your credit score based off of long term or short term credit history?
Long term
Would missing payments increase or decrease your credit score?
Decrease
What percent of your NEW CREDIT makes up your credit score?
10%
How can you improve your credit score?
Pay bills on time, use a secured credit card, pay down debt, etc
Do you ideally want to have a high credit score or a low credit score?
High
What is the scale for minimum to maximum possible credit score?
300-850
If you had $4,000 currently outstanding on all your credit cards, would that increase or decrease your credit score?
Increase
What percent of your LENGTH OF CREDIT HISTORY makes up your credit score?
15%
What reasons might an 18-year-old have for his/her thin file?
As an 18 year old you aren’t making big monthly payments like older people would so they don’t have a big payment history.
Why is it important to build a credit history from a young age?
It's a good advantage for the future so then you're able to make big purchases like buying a house or a car while paying less interest
How do you check your credit score?
FICO
Would not going through bankruptcy or other proceeding increase or decrease your credit score?
Increase
What percent of HOW MUCH YOU OWE makes up your credit score?
If you can't pay your credit card debt, should you consider taking out a personal loan to pay it off?
Yes
How do you calculate credit utilization rate?
Credit balance / credit limit x 100 = credit utilization