Credit Reports and Credit Scores Flashcard

Front

What are the factors that can affect your credit score?

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Payment history, credit utilization, length of credit history, new credit accounts, and types of credit used

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How can you improve your credit score?

Back

By paying bills on time, keeping credit card balances low, and avoiding opening too many new accounts at once.

Front

What kind of information can be found in a credit report?

Back

Credit history, credit accounts, payment history, public records

Front

How do credit reports impact the approval of loans?

Back

Credit reports impact loan approval by assessing the risk of lending money to an individual.

Front

What are some common errors found in credit reports, and how can they be disputed?

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Dispute errors by requesting a free credit report, contacting the credit bureau, and providing supporting documentation.

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What is the importance of credit scores in financial decision making?

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Credit scores help lenders assess the risk of lending money to an individual.

Front

What are the consequences of having a low credit score?

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Negative impact on loan approvals, higher interest rates, and limited access to financial products

Front

How long does negative information stay on a credit report?

Back

7 years

Front

What are the different types of credit scores used by lenders?

Back

FICO Score, VantageScore, and proprietary scores

Front

What are the potential benefits of monitoring your credit report regularly?

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Increased risk of identity theft, Higher interest rates on loans