Assessment Unit 4 Credit

Front

What is a FICO credit score?

Back

A FICO credit score is a three-digit number that represents a person's creditworthiness, based on their credit history.

Front

What does a FICO score of 738 indicate?

Back

A FICO score of 738 is considered 'Good/Fair' credit.

Front

True or False: Loan companies check your credit history when you apply for a loan.

Back

True

Front

What happens if a credit card bill is not paid in full by the due date?

Back

The credit company can charge interest on the remaining balance.

Front

List some benefits of using credit cards.

Back

Benefits include safety and convenience, bonuses, building a positive credit report, and being necessary for reservations and online shopping.

Front

What is the impact of numerous credit applications in a short period of time?

Back

It has a Negative Impact on your credit score.

Front

Define 'credit history'.

Back

Credit history is a record of a borrower's responsible repayment of debts.

Front

What is the purpose of a credit report?

Back

A credit report provides detailed information about an individual's credit history, including credit accounts, payment history, and credit inquiries.

Front

What is the difference between secured and unsecured credit?

Back

Secured credit is backed by collateral, while unsecured credit is not backed by any asset.

Front

What is a credit limit?

Back

A credit limit is the maximum amount of credit that a lender extends to a borrower.