What is a credit Score?

What is a Credit Score?

Open Ended

What is credit card utilization and why is it important?

Credit Score

The bank's ability to trust you with money.

Multiple Choice

What is the term meaning the bank's ability to trust you to pay back a loan?

• Credit Card

• Credit Agency

• Credit Score

• Credit Limit

Multiple Choice

A record of a person’s use of credit

• Credit Score

• Credit Report

Why is Credit Score important?

• It determines whether you will be approved for a loan.

• It determines how much credit you will be trusted with.

• ​Some jobs or landlords will check your credit score before accepting your application.

• ​It determines your interest rate on loans.

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FICO Credit Score

• 35% Payment History - Making payments on time will make your credit score go higher. Missing payments or making late payments can lower your credit score.

• 30% Current Debt - Having a lot of debt compared to your credit limit can make your credit score go down. Regularly paying down your debts can help.

• 15% Credit History - Having a longer history of managing credit tends to make your credit score higher. Having no or little credit history may keep your score low.

FICO Credit Score - cont'd

• 10% New Credit Applications: Applying for too many credit cards can hurt your credit score. Do your research and consider applying for only the credit cards you need.

  
  

• 10% Types of Current Credit - Maintaining a variety of credit accounts like car payments, house payments and credit cards can help your credit. Just having credit cards can keep your score lower.

  
  

Reading Your Credit Score

• 300 - 579 - POOR

• 580 - 669 - FAIR

• 670 - 739 -  GOOD

• 740 - 799 - VERY GOOD

• 800 - 850 - EXCELLENT(Prime)

​To ensure your credit score is accurate you should:

​- Request your free credit report from each of the main credit bureaus

- Review your personal information and make sure that it’s up to date

- Report any unauthorized activity to the issuing credit bureau

Multiple Choice

520 is considered a very good credit score.

• true

• false

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What is the most important factor of a credit score?

• Types of credit

• Payment History

• Amount of debt

• Inquires

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

A person or organization who makes funds available to borrow.

• lender

• borrower

Multiple Choice

What should you do to make sure your credit report is accurate?

• Request your free credit report from each of the main credit bureaus

• Review your personal information and make sure that it’s up to date

• Report any unauthorized activity to the issuing credit bureau

• Do all of these things

Credit Bureaus

• Keep Track of your Credit Score

• Three Major Credit Bureaus: Equifax, Experian, Transunion

• You can get a Free Credit Report every 12 months. After that, credit checks cost money, costs you money. Many credit cards offer free credit checks as a reward for using their card.

• ​

• ​Checking your credit score will not negatively affect your score. Many "Hard Inquiries" from lenders will bring your score down because it makes you look like you are shopping around for someone to loan you money.

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The highest FICO score possible is:

• 1600

• 1000

• 850

• 700

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When may a person view his/her credit report for free?

• At any time and an unlimited number of times

• Once a year, from each of the three main credit reporting agencies

• A person may not review his/her credit report

• When a person has sufficient financial resources

Multiple Choice

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

• Finance Charge

• Co-Signer

• Minimum Payment

• Credit Limit

Multiple Choice

Checking your credit report will negatively affect your credit score.

• True

• False

Multiple Choice

Which of the following items can be found on a credit card statement? Choose all that apply.

• 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

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

• True

• False

​How long will bad things stay on my credit report?

Multiple Choice

How long will most negative credit action usually remain on a credit report?

• 4 years

• 11 years

• 7 years

• 15 years

Multiple Choice

Inquiries stay on a credit report for....

• 2 years

• 7 years

• 10 years

• Never on a credit report

• Always on your credit report

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

Late Payments can stay on your credit report for up to:

• 7 years

• 10 years

• the rest of your life

• it doesn't show up

Multiple Choice

Open accounts in "good standing" stay on a credit report for....

• 2 years

• 7 years

• 10 years

• Never on a credit report

• Always on your credit report

Multiple Choice

Hard Inquires lower your credit score

• True

• False

Multiple Choice

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

• True

• False

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

Why is it important to establish positive credit history?

• Higher credit scores result in lower interest rates on loans

• You are more likely to be offered a loan by a bank

• Positive credit history results in higher credit scores

• All of the above