Credit Knowledge Flashcard

Front

What is credit typically used for?

Back

Borrowing money to buy something now and paying it back later

Front

What is one advantage of using credit?

Back

Convenience and safety

Front

What is a benefit of having a good credit score?

Back

Easier to borrow money for big purchases

Front

What is a factor to consider before using credit? Options: The color of the credit card, The brand of the bank, The number of credit cards you own

Back

Necessity of purchase

Front

How do banks decide who gets credit?

Back

By assessing credit reports

Front

What do credit reports track?

Back

Amounts owed and payment history

Front

Who can see your credit report?

Back

Landlords, employers, and lenders

Front

What is the ideal credit score range?

Back

300-850

Front

What does 'Character' refer to in the Five C’s of Creditworthiness?

Back

Trustworthiness to repay

Front

What does 'Capacity' refer to in the Five C’s of Creditworthiness?

Back

Cash flow to meet obligations