Credit Reports 22

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What is a credit report?

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A credit report is a detailed record of an individual's credit history, including information about credit accounts, payment history, and any negative items like bankruptcies or foreclosures.

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Where do foreclosures appear on a credit report?

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Foreclosures appear in the 'Potentially negative items' section of a credit report.

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True or False: Paying cash for all purchases helps build a positive credit history.

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False. To build a positive credit history, you need to use credit responsibly and make timely payments.

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What happens if you don't pay your rent?

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If you don't pay your rent, it can show up on your credit report as a negative item.

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Who is a lender?

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A lender is a bank, financial institution, or person that provides money to borrowers with the expectation of being paid back.

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True or False: A credit report determines if a lender will allow you to borrow money.

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False. A credit report provides information, but the lender makes the final decision.

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What is a credit inquiry?

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A credit inquiry is a request by a lender to check your credit report when you apply for credit.

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What is the significance of payment history in a credit report?

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Payment history is crucial as it shows whether you have paid your bills on time, which affects your credit score.

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What are accounts in good standing?

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Accounts in good standing are credit accounts that are current and have no late payments.

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What does it mean to have a negative item on a credit report?

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A negative item indicates a missed payment, foreclosure, or bankruptcy that can lower your credit score.