5 components of a credit score.
What component shows your timeliness of payments.
Payment history
What is a good credit score?
700 or above.
How do you check a credit score?
You can request a free copy of your credit report from each of three major credit reporting agencies. (Equifax, Experian, and TransUnion)
Why is it important to build a credit history from a young age?
So that you can build up your credit score. This can help you to buy houses, cars, ect. because you have a good credit score.
What are important things to check on a credit report?
- Personal Information (name, address, phone number, ect.)
- Credit account section
- Inquiries Section
-Public records section
What is the amount you use versus how big your credit limit is?
Credit Utilization
How often do you check a credit score?
One a year
How often do you check a credit report?
Once a year.
What is one way you build your credit history?
Get a secured credit card.
How does a persons credit score determine his/her interest rate?
What component shows how long you have had a open credit score?
Credit history length
Why is it important to have a credit score?
So that you can take out loans with a smaller interst rate.
When is it a good idea to borrow (take on credit)?
When it is a large amount of money that you aren't able to fully pay upfront.
What is one way you can build your credit history?
Practice good credit habits.
Can you get a loan or credit card with bad credit?
It is really hard to find a bank that will trust you. If you do find a bank you will have very high interest rates.
What component shows new things under your credit score?
New credit
What factors affect my credit score?
Late payments, missed payments, ect.
What is one consequence of having a thin file? (No credit or little used credit history)
It makes it difficult to get approved for credit.
Is it good to use most of your credit limit per month?
no
What is one consequence of having a thin file?
There's not enough information in your credit reports to generate a credit score.
What component shows the all the types of accounts under your credit score?
Credit mix.
How does a persons credit score determine his/her ability to borrow?
It allows a person who has a good credit score to make big loans for a house, car, ect. But for a person who has a low credit score it makes it really hard to take out loans because banks won't trust them.
What is good about having a large file?
You make yourself more attractive to creditors.
What is one way you can build up your credit history?
Get credit for the bills you pay.
What does credit utilization rate mean?
It means how much you currently own divided by your credit limit. (generally expressed as a percentage)