Unit 4 - Managing Credit

Front

What is a credit score?

Back

A credit score is a numerical representation of a person's creditworthiness, based on their credit history and financial behavior.

Front

How does a credit score affect loan approval?

Back

A credit score can determine whether you are approved for a loan and what the interest rate on that loan will be.

Front

What are the two most important factors in calculating your credit score?

Back

Payment history and amounts owed.

Front

What companies track your credit information?

Back

Equifax, Experian, and TransUnion.

Front

What information does NOT appear on a credit report?

Back

Salary of your current job.

Front

What is payment history?

Back

Payment history is a record of your payments on credit accounts, including whether payments were made on time.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Front

What does 'amounts owed' refer to in credit scoring?

Back

'Amounts owed' refers to the total amount of debt you currently have across all credit accounts.

Front

What is the impact of a low credit score?

Back

Consumers with low credit scores typically receive higher interest rates on loans and may have difficulty getting approved for credit.

Front

What is a credit report?

Back

A credit report is a detailed account of an individual's credit history, including credit accounts, payment history, and outstanding debts.

Front

What is the role of lenders in credit reporting?

Back

Lenders report your credit activity to credit bureaus, which helps in the calculation of your credit score.