Unit 7: Credit Score {Day 1}

​Unit 7: Credit Scores

{Day 1}​

Miss Danes Personal Finance TSAS

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​Unit 6: Credit Scores

Vocabulary

Multiple Choice

A number assigned to a person that indicates how likely they are to repay a loan

• credit limit

• credit report

• credit score

• credit utilization

Multiple Choice

A statement of a person's credit activity, accounts and credit score

• credit limit

• credit report

• credit score

• credit utilization

Multiple Choice

The amount of credit a person is using compared to their credit limit

• credit limit

• credit report

• credit score

• credit utilization

Multiple Choice

The maximum amount of money a person can borrow

• credit limit

• credit report

• credit score

• credit utilization

Multiple Choice

The last day of a person's billing cycle and the day the statement is sent to the person

• installment loan

• statement closing date

• hard credit check (credit inquiry)

Multiple Choice

A request by a bank or other institution to view a person's credit report

• installment loan

• statement closing date

• hard credit check (credit inquiry)

Multiple Choice

A fixed amount of money to be repaid on a set schedule

• installment loan

• statement closing date

• hard credit check (credit inquiry)

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​Credit Scores Explained

Open Ended

Why do we have credit scores?

Multiple Choice

On-time payments are worth the largest percentage (35%) of our credit score

• True

• False

Multiple Choice

When we're late paying a bill, how many years will that late payment stay on our credit report?

• One late payment doesn't show

• 1 year

• 7 years

• Will always be on our credit report

Multiple Choice

The ratio of your outstanding credit balance (on both credit cards and lines of credit) compared to your overall credit limit combined across your accounts make up which part of our credit report?

• On time payments (35%)

• Credit Utilization (30%)

• Age of Credit History (15%)

• Mix of Credit Types (10%)

• New Credit Accounts (10%)

Multiple Choice

Credit Utilization is higher when we use less of our allotted credit: such as you have card that has a $1000 limit, but only ever use $100 of it

• True

• False

Multiple Choice

Age of Credit History: people with longer credit histories tend to have access to more lines of credit with lower interest rates (granted payment history and utilization are in good standing)

• True

• False

Multiple Choice

Credit inquiries and hard credit checks can lower your credit score by 5-10 points for about 1 year

• True

• False

Multiple Choice

Types of Credit: Credit cards both secured and unsecured are which type of credit?

• Revolving Credit

• Installment Cred

Multiple Choice

Types of Credit: Car loans, mortgages and the like are which type of credit?

• Revolving Credit

• Installment Cred