Lesson 7 Credit Score

Lesson 7 :Credit Score

Module 4

Objectives

• Identify the credit bureaus.

• Describe how a credit score is calculated.

Essential Questions

• Discuss the purpose of financial

Lesson 7: Credit Score

Warm Up

Multiple Choice

Bank of America issues you a credit card with a maximum balance of $1,000.  This is an example of:

• Finance Charge
• Co-Signer
• Minimum Payment
• Credit Limit

Multiple Choice

Which of the following items can be found on a credit card statement?

• Payments made and new charges

• Fees and interest charged

• Year to date totals and how long it will take you to pay it off w/minimum only

• All of these

Multiple Choice

Your credit score is not configured off of which of the following:

• Payment history

• Amount owed

• GPA

• Length of credit history

Multiple Choice

Which of these show your credit history?

• Credit score

• Credit report

• Both

Multiple Choice

Applying for a credit card only affects your credit score if you use the card.

• True

• False

Multiple Choice

A high credit score means you will have the highest interest rates when applying for a loan

• True

• False

Multiple Choice

Other than FICO, which other company creates credit scores?

• McDonalds

• FICO

• Credit Karma

• VantageScore

Multiple Choice

Bankruptcy can stay on your credit report for up to:

• 2 years

• 10 years

• the rest of your life

• it doesn't show up

Multiple Choice

The highest FICO score possible is:

• 1600

• 1000

• 850

• 700

Multiple Choice

What is the most important factor of a credit score?

• Types of credit

• Payment History

• Amount of debt

• Inquires

Multiple Choice

Hard Inquires lower your credit score

• True

• False

Multiple Choice

Which one of these is NOT one of the 3 main Credit Bureaus?

• Equifax

• Experian

• FICO

• TransUnion

Multiple Choice

Your credit score determines how successful you will be in obtaining a loan

• True

• False

Credit Score Build Up (YouTube)

https://www.youtube.com/watch?v=uZloK91c8dw&t=1s

Lesson 7:Credit Score

Vocabulary

Credit score

It is a numerical measure of your credit worthiness

Experian

One of the three main credit reporting agency

TransUnion

One of the three main credit reporting agency

Equifax

One of the tree man credit reporting agency

Lesson 7: Credit Score

Video Lesson

Lesson 7: Credit Score

Quiz 7

Multiple Choice

If you have credit cards that have a total credit limit of $5,000, and you have only $100 remaining before you reach your credit limit. Your credit score will be effected ___.

• negatively

• positively

• not at all

Multiple Choice

The number one factor that affects your credit score is paying on time.

• True

• False

Multiple Choice

A numerical measure of your creditworthiness is your credit ___.

• report

• card

• score

• capacity

Multiple Choice

You decide to go on a shopping spree. You make a purchase at Sears, and the cashiers says "Can I put your purchase on your Sears Card?" You reply "I don't have a Sears Card." The cashier asks you if you would like to apply for one. You say "Sure!" Throughout your shopping spree you purchase items at many different stores. At each of the stores this same scenario happens, the cashier asks you to apply for credit and you say yes. What will happen to your credit score?

• It won't change at all because you were denied the credit card.

• It will increase because of the number of times you have applied for credit.

• It will decrease because of the number of times you have applied for credit.

Multiple Choice

It will decrease because of the number of times you have applied for credit.

• 3 years

• 7 years

• 15 years

• your lifetime

Lesson 7: Credit Score

THE END !