Understanding credit
How many credit bureaus are there?
Three
What does FICO mean?
Fair Isaac Corporation
What are two advantages of good debt?
Mortgage and Education
Being legally declared incapable of paying off one's debts and having one's assets administered by a court to compensate creditors
Bankruptcy
What does a good credit score often result in?
Lower interest rates
Who owns the credit unions?
The members
List three disadvantages of debt
Paying more due to interest, Easy to spend for immediate gratification, and loss of federal payment
How often do you get a credit report?
Every 12 months
Investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk
diversify/diversification
What are two examples of Cryptocurrency?
Bitcoin, Ethereum
List four advantages of Debt
Can generate wealth, Helps start or expand businesses, Builds equity and help build credit scores.
What are the factors of FICO?
Payment history, credit utilization, credit history, length of credit and types of credit
What are penalties commonly known as?
Late fees
Loan or debt tied to a specific tangible asset that can be used as collateral and repossessed if payments are not made
Secured/credit/debt
What three things are listed on a check?
ABA Routing number, Account number and check number
How does banks make their money?
Interest
What occurs when taxes have not been filed correctly?
Audits
What are factors of Vantage score?
Credit age, Credit utilization, total balances, recent credit behavior, available credit, credit mix and payment history
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
Stock(Finances)
What are the three types of interest?
Compound, Fixed and Variable
Who runs the banks?
Investors
What is the main difference between revolving and installment?
One is on going borrowing and the other one has a set monthly payment
What methods can reduce taxable Income?
401k contributions, 529 college savings account, Flex savings, health savings account, Traditional savings account
a measure of how likely you will default on your debt obligations according to a lender’s assessment, or how worthy you are to receive new credit
Creditworthiness
How many payment apps are there?
6