Why do banks want to know the financial history of their loan customers?

• Lenders need some way of understanding the financial risk of giving a consumer a line of credit.

• Lenders don't want an understanding the financial risk of giving a consumer a line of credit.

I’m your bank. You want a loan. Why should I loan you money?

• I am not creditworthy; I don't pay my bills on time; I have a lot of debt.

• I am creditworthy; I pay my bills on time; I have little debt.

Tags

CCSS.RI.6.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

A credit report contains many pieces of personal information

about a consumer. Which one is NOT an example?

• current and previous employers

• Social Security number

• how many college degrees you have

You are busy with finals and forgot to pay your credit card bill. You are charged $100 in late fees. This will likely lower your

• credit score

• late fee

Tags

CCSS.RI.6.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

A credit score is

• a standardized measurement of a person’s potential to repay a debt.

• a standardized measurement of a person’s income potential

Which is NOT one of the three nationwide credit reporting agencies?

• Equifax

• Experian

• FICA

What does a consumer reporting agency do?

• It keeps records of consumers’ bank statements

• It keeps records of consumers’ credit history.

You pay your bills on time. Is this a smart move?

• yes

• no

Tags

CCSS.RI.7.1

CCSS.RI.7.8

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.8.1

Your credit score is 699. According to the FICO credit score

system, is this a good or bad credit score?

• Good

• Bad

Could this happen? Bill and Sandy are buying their first home. Unfortunately, after checking their credit history, their bank turns them down for a loan because of nonpayment of past credit card bills.

• Yes

• No