Cost of Bad Credit

Front

What is the main factor affected by a credit score? Options: Career growth, Monthly expenses, Borrowing money

Back

All of the above

Front

Why do people with good credit get the lowest interest rates on loans and credit cards?

Back

They have proven to pay back debts in full.

Front

Why do lenders charge higher interest rates to people with bad credit?

Back

They have struggled to keep up with payments in the past

Front

What do home and car insurance companies use to help determine a policy premium?

Back

Credit-based insurance score

Front

Why do consumers with bad credit often file insurance claims more often?

Back

They have struggled to keep up with payments in the past

Front

Why do employers use a credit report in the hiring process?

Back

To decide whether or not a person is responsible with their finances.

Front

Why do telephone and utility companies use information in a credit report?

Back

To decide whether to provide services to that person because they will pay their bills.

Front

Why do landlords use credit report information when renting an apartment to someone?

Back

To evaluate the candidate's financial responsibility.

Front

What happens if a person has a bad credit score when applying for a loan or credit card?

Back

They will pay a much higher interest rate.

Front

How does a bad credit score affect the approval for a loan or credit card?

Back

It makes the approval process difficult.